The US Securities And Exchange Commission Sues Binance For Improper Use Of Funds, Causing Cryptocurrency Prices To Fluctuate

In a lawsuit filed in federal court in Washington (USA) on June 5, the SEC alleges that tokens traded on Binance.com and Binance.US, including Solana, Cardano, Polygon, Filecoin, Cosmos, Sandbox, Decentraland , Algorand, Axie Infinity and COTI are offered as securities.

They also claim that the world’s largest cryptocurrency exchange violates investor protection regulations. Binance is accused of inflating trading volumes, directing customer funds, not restricting US users from the platform, misleading investors about its market controls, or selling unregistered securities.

This information caused Bitcoin this morning to lose 6.7%, to $ 25,415 a coin – the lowest since April. Binance Coin – Binance’s token – fell up to 13%. Ethererum – the world’s second largest cryptocurrency – is also depreciating.

Solana’s price this morning sometimes decreased by 13%. Cardano lost 8%. Polygon lost 6% and Filecoin lost 10%.

Data from CoinMarketCap shows that the cryptocurrency market currently has a total capitalization of $1.2 trillion. Of which, Bitcoin accounts for half. Binance Coin is the 4th largest token, with a market cap of $43 billion. Binance is currently the largest cryptocurrency exchange in the world, handling 50% of global trading volume.

The SEC charges are the latest legal challenge facing Binance and its co-founder and CEO Changpeng Zhao (CZ). In March, the US Commodity Futures Trading Commission (CFTC) also accused Binance and Zhao of violating US derivatives regulations. The country’s Ministry of Justice is also investigating whether Binance was used by the Russians to circumvent US sanctions on money transfers.

In a lawsuit filed in US federal court on June 5, the SEC listed 13 charges against Binance and Zhao (CZ). Zhao doesn’t seem too worried about the allegations. On Twitter, he posted an article, asserting that Binance employees are still working to “ensure the system is stable, including withdrawals and deposits”.

Binance also stated in a statement that it disagrees with the allegations made and will “work to protect its platform”.

“It is not surprising that the SEC sued Binance. They have already taken legal action against many other exchanges and it is only a matter of time before they touch the biggest player in the field,” said Jeffrey Blockinger – Director of Consulting at the exchange. transaction Vertex Protocol said.

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