News

BNB Price Tumbles 8% On SEC Lawsuit Against Binance, Market Fears Further Impact

Binance's BNB cryptocurrency faces unprecedented price drop as the world's largest crypto exchange and its CEO get sued by the US SEC.
Published by
BNB 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.

Advertisement

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.

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?

Advertisement

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

Advertisement

Share
Coingapestaff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Trump Picks SEC Crypto Counsel Michael Selig to Lead CFTC Amid Crypto Oversight Push

Michael Selig is the latest candidate who has been chosen by President Donald Trump to…

October 25, 2025
  • News

First Spot XRP ETF Hits Milestone as CME Flags Institutional Interest

Institutional momentum in XRP is accelerating as the first U.S. spot XRP ETF ($XRPR) reached…

October 25, 2025
  • Price Analysis

Can Hype Price Hit $50 After Robinhood Listing?

HYPE, the native token of the decentralized exchange Hyperliquid, has witnessed a notable price surge…

October 24, 2025
  • News

XRP News: Ripple Unveils ‘Ripple Prime’ After Closing $1.25B Hidden Road Deal

In the latest XRP news, Ripple has introduced 'Ripple Prime,' which it plans to integrate…

October 24, 2025
  • News

Traders Price In Two More Fed Rate Cuts This Year After Soft Inflation Data

Traders are betting on the FOMC to make two more rate cuts this year following…

October 24, 2025
  • News

Crypto.com Joins Ripple in Banking License Bid Amid Industry Push for Market Structure Bill

Crypto.com has submitted an application with the U.S. National Trust Bank Charter. It aims to…

October 24, 2025