Changpeng Zhao, the exchange’s CEO, called on the industry to unite to better push for a more sensible regulatory framework. The crypto community reacted strongly to the news mostly expressing support for Binance. A similar criticism was leveled at the Commission by various other players in the industry, most notably Coinbase after it had been warned of a likely enforcement action. It also expressed its disappointment with the SEC as it claims to have worked hard to engage the watchdog in good faith dialogue. The lawsuit alleges numerous wrongdoings on the part of the exchange including misleading investors, failing to prevent US-based customers from accessing the international platform, offering unregistered securities, and even a degree of market manipulation.īinance responded strongly to the complaint stating it will fight vigorously to defend itself from the regulator. The across-the-board fall of prices in the cryptocurrency industry was seemingly singularly caused by an SEC lawsuit targeting Binance and its CEO, Changpeng Zhao. Binance’s BNB was similarly affected declining nearly 10% and falling to around $276. Bitcoin fell sharply on Monday from approximately $26,500 to $25,500 while ETH dropped more than 9% to just above $1,800. Most major cryptocurrencies saw a similar decline following the news. MicroStrategy, the other major cryptocurrency-related company, similarly closed about 9% in the red.
While Coinbase was particularly hard hit-likely because it was also threatened with an enforcement action by the Commission-much of the digital assets industry saw a similar decline. The decline came quickly after it was announced that the Securities and Exchange Commission has filed a major lawsuit against Binance and its CEO, Changpeng Zhao. This Monday, the shares of Coinbase, the largest publicly-traded cryptocurrency exchange, closed 9% down. Crypto Markets Decline Shaprly After Binance Lawsuit is Unveiled The sharp decline was triggered by a lawsuit filed by the SEC against Binance. A similar price movement was seen across multiple cryptocurrencies, as well as the other major digital assets-related stock, Microstrategy. Zhao said the CFTC claims were an "incomplete recitation of facts.The shares of the cryptocurrency exchange Coinbase closed 9% in the red on Monday, June 5th. Commodity Futures Trading Commission (CFTC) in March for operating what it alleged were an "illegal" exchange and a "sham" compliance program.
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The SEC complaint is the latest in a series of legal headaches for Binance. "It's another blow to the crypto industry and the crypto exchanges of the world," said Tony Sycamore, market analyst at IG Markets, of the SEC suit.īinance's BNB cryptocurrency, the world's fourth-largest, was up 1.63% to $282.19, after a 9.2% plunge on Monday, its worst daily fall since November. The world's biggest cryptocurrency was last at $26,300, up 3.85% on the day. CRYPTO BLOWīitcoin steadied after falling more than 5% yesterday, its worst daily decline since April 19. "We intend to defend our platform vigorously," it said in a blog. In statements on Monday, Binance said it had been cooperating with the SEC's probes and had "worked hard to answer their questions and address their concerns", including by trying to reach a negotiated settlement. The lawsuit, which cited a number of practices first reported by Reuters in a series of investigations into the exchange, marks the most significant step against a crypto company by the SEC in its sweeping crackdown on the industry this year. customers from its platform and misled investors about its market surveillance controls. The SEC alleged in 13 charges that Binance artificially inflated its trading volumes, diverted customer funds, failed to restrict U.S. Securities and Exchange Commission on Monday sued Binance, its CEO Changpeng Zhao and the operator of Binance.US over what it called a "web of deception" to evade U.S. Neither exchange immediately responded to a request for comment.
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