Top Altcoins Crash by Over 20% As US Court Summons Binance CEO

A district court in the US has summoned Binance founder and CEO Changpeng Zhao just two days after the U.S. Securities and Exchange Commission (SEC) sued the leading crypto exchange, the operating company for Binance on allegations of violating federal securities laws.

The lawsuit claims that Binance offered unregistered securities to the the general public in the form of BNB token and Binance BUSD stablecoin.

JUST IN: The United States District Court has just issued a summons for #Binance CEO Changpeng Zhao, just two days after SEC sued the exchange. pic.twitter.com/sf11WTb5ZE

— WhaleWire (@WhaleWire) June 7, 2023

The US SEC’s crackdown on the leading crypto exchanges sparked fear in the cryptocurrency market, with top altcoins declining by over 20% in the past seven days.

Altcoins Crash By Over 20% Amid SEC’s Legal Action Against Crypto Exchanges

Amid this chaos, Binance’s own token BNB traded in red. According to the 7 Day data available on CoinMarketCap, BNB is down by -14%.

Other tokens such as Pepe, Polygon, Gala fell by over 13% while the prices of Cardano, Solana, Polkadot and XRP too dipped post SEC’s lawsuit against two of the biggest crypto exchanges among other altcoins.

Moreover, data shows that the global cryptocurrency market cap fell by 2.3% to $1.1tn, with the largest cryptocurrency Bitcoin dropping 2% to trade below the $26,500 mark. Ethereum price also dipped below $1,850.

As reported by Economic Times, Vikram Subburaj, CEO of Giottus Crypto Platform had stated that Bitcoin and Ethereum continue to hold their levels as a safer hedge for investors and as the US Fed decides on interest rate hikes, more volatility can be anticipated in the upcoming week.

District Court Judges That Will Preside Over Coinbase & Binance SEC Lawsuits

Meanwhile, court filings have revealed the names of the two Judges from the United States District Court that will preside over the crypto exchanges – Coinbase and Binance’s SEC lawsuits.

SEC v Coinbase case will be heard by Judge Jennifer H. Rearden in the Southern District of New York while Judge Amy Berman Jackson will tackle the SEC vs Binance case in the District of Columbia, according to the filings.

Also Read: Binance & Coinbase Witness $600Mn In Net Outflows As Investors Lose Trust