- The digital asset market plummeted 3.6% in the last 24 hours in reaction to the SEC’s legal action against Binance.
- The Commission is alleging a lack of care on the part of Binance by operating an unregistered exchange, commingling, and putting user assets at risk.
- Binance has denied all allegations so far adding that they will “vigorously defend” the integrity of its platform.
Binance comes under the regulatory scrutiny of the Security and Exchange Commission (SEC) once more, with the Commission filing a lawsuit that has sent the market tumbling.
Following the lawsuit filed by the SEC against Binance on June 5, the cryptocurrency market has felt the heat across asset prices, investor sentiments, and other ripple effects of the Commission’s hammer. Both top assets and meme coins have been trading at lows wiping billions off the market cap.
Market leader Bitcoin (BTC) lost 4.2% in the aftermath of the lawsuit, trading below $26,000 for the first time since March. BTC trades at $27,068 at press time, with bearish traders betting on a $24k BTC price. Ethereum (ETH), on the other hand, declined by 3.1% in the same period and trades at $1,884.
Other altcoins recorded a much more significant drop culminating in a 3.6% market cap slip in 24 hours per CoinGecko. Elon Musk-backed Dogecoin DOGE plunged 7%, wiping away little gains picked up last week. Leading the pack was PEPE as it continued its free fall, losing 14.9%.
Other assets hit by the development include The Sandbox (SAND), Terra Luna Classic (LUNC), Axie Infinity (AXS), etc. The crypto fear and greed index also points to significant downward market sentiment not recorded since USD Circle lost its dollar peg in March. The radar is in the “fear zone” at 44 down from last week’s “neutral 51.”
Binance to “vigorously defend”
The SEC filed a total of 13 charges against Binance, ranging from illegally operating an exchange, commingling user assets, and conducting the sale of unregistered securities. In a press release issued on Monday, the Commission added that-
“We allege that Zhao and the Binance entities not only knew the rules of the road, but they also consciously chose to evade them and put their customers and investors at risk all in an effort to maximize their own profits.”
Meanwhile, Binance has distanced itself from all allegations noting that the exchange has been compliant with regulations and will defend its reputation “vigorously.”
“Any allegations that user assets on the Binance.US platform have ever been at risk are simply wrong. We will vigorously defend against any allegations to the contrary.”
The digital asset community has expressed dissatisfaction with the conduct of the SEC and other regulatory bodies recently. In recent months, Binance has been under intense regulatory pressure from the SEC and the Commodity Futures Trading Commission.