On Monday, the Securities and Exchange Commission (SEC) filed a lawsuit against Binance, the largest cryptocurrency exchange globally. The lawsuit alleged Biannce of mishandling customer funds and providing false information to regulators and investors in the United States.
This is the second time this year that Binance has faced accusations from federal regulators for allegedly evading investor protection laws in the United States. Regulators have long viewed Binance as a prominent target in their efforts to regulate the crypto industry, which has traditionally espoused an anti-government stance. Binance, known for its substantial average daily trading volume of $65 billion, has attracted regulatory attention due to its size and influence.
Do read: KYC in Crypto: Enhancing Security and Regulatory Compliance
Altcoins plummeted following Binance lawsuit
Altcoins are experiencing significant declines in value after the Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its CEO, Changpeng “CZ” Zhao. The allegations include the offering of unregistered securities to the public.
Among the cryptocurrencies mentioned in the lawsuit are Binance’s BNB token, BUSD stablecoin, as well as Solana (SOL), Cardano (ADA), Polygon (MATIC), Coti (COTI), Algorand (ALGO), Filecoin (FIL), Cosmos (ATOM), Sandbox (AXS), and Decentraland (MANA).
Following the news, the entire cryptocurrency market has experienced a decline, with most of the mentioned tokens, including Bitcoin (BTC), Solana (SOL), Cardano (ADA), Polygon (MATIC), Coti (COTI), Algorand (ALGO), Filecoin (FIL), Cosmos (ATOM), Sandbox (AXS), Shiba Inu (SHIB) and Decentraland (MANA), seeing losses ranging from 5% to 10%. Following the lawsuit, Binance released a statement revealing its disappointment in the commission’s actions towards the exchange.
