NewsletterBNB Price Tumbles 8% On SEC Lawsuit Against Binance, Market Fears Further Impact
Crypto News: According to recent reports, the Securities and Exchange Commission (SEC) has filed a lawsuit against the world’s largest cryptocurrency exchange, Binance, as well as the company’s CEO, Changpeng “CZ” Zhao — accusing them of violating regulations governing the sale of securities in the United States.
BNB Price Reacts With Major Price Drop
Amidst the legal battle, Changpeng Zhao, commonly known as CZ, has reassured users of an official response once he receives the complaint, emphasizing the continuity of operations, including crypto withdrawals and deposits. However, the price of Binance’s native token, BNB, took a steep nosedive of 8% within minutes of the news surfacing. Notably, the SEC’s case against the crypto exchange alleges that both BNB and the BUSD stablecoin are unregistered securities.
4.
Our team is all standing by, ensuring systems are stable, including withdrawals, and deposits.
We will issue a response once we see the compliant. Haven't seen it yet. Media gets the info before we do.
🙏
— CZ 🔶 Binance (@cz_binance) June 5, 2023
Moreover, the repercussions of the SEC lawsuit extend beyond Binance alone. Major cryptocurrencies like Bitcoin, Ethereum, and Litecoin also experienced a decline in their prices. Bitcoin dropped by roughly 3.6%, while Ether witnessed a decrease of 3%. Crypto analysts and the larger crypto community anticipate further price declines as the SEC vs Binance case unfolds, adding more strain to the already bearish market momentum.
Read More: Ethereum Co-Founder Moves 22K ETH To Kraken, Crash Ahead?
SEC Alleges Breach of US Securities Rules
This recent lawsuit by the SEC follows a previous legal action from the US commodities watchdog in March, which accused Binance and Zhao of periodically breaking its rules. In response, Binance and Zhao defended their compliance efforts, expressing disappointment in the lawsuit by the Commodity Futures Trading Commission, while reaffirming their commitment to working with regulators.
The US Securities and Exchange Commission filed a case in US federal court on Monday, accusing Binance of flouting investor protection rules by operating unregistered exchanges, misrepresenting trading controls, and selling unregistered securities, among other violations. The SEC has been investigating whether the Binance exchange illegally sold digital currencies during the exchange’s early stages in 2017.
Being at the center of the lawsuit, BNB’s price is currently exchanging hands at $280 at the time of writing. As the SEC lawsuit unfolds, the crypto market remains on edge, awaiting further developments and potential impact on prices.
Also Read: Crypto Skeptic JP Morgan CEO Jamie Dimon Not Running For Office
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