Binance finds itself entangled in a file lawsuit They were filed by the US Securities and Exchange Commission (SEC), dealing a heavy blow to BNB, the token issued by Binance. The allegations against the cryptocurrency exchange point to its involvement in illegal activities, specifically multiple violations of securities laws.
Consequently, the impact of these allegations manifested itself in the form of large outflows from the exchange, prompting CEO Changpeng Zhao to revealing of A staggering figure of over $392 million in net outflows in the last 24 hours. It is worth noting that Binance has handled large inflows before, which indicates a history of dealing with such challenges.
According to our data, the last 24 hours, Binance The net inflow was about $392 million.
Our portfolio addresses are public. Some third-party analytics measure the change in assets under management (AUM) in USD equivalent as an outflow. This may include falling cryptocurrency prices (which leads to lower assets under management) as an “outflow”. …
– Czechoslovakia 🔶 Binance (cz_binance) June 10, 2023
Meanwhile, in the wake of the Securities and Exchange Commission filing, Nansen data Indicates Binance has seen a staggering $3 billion worth of outbound inflows. The fallout from the recent lawsuit has caused the value of BNB to plummet. Koenjiko reports The token has seen a sharp drop of more than 23% in just one week.
Source: Nansen
Binance vs. SEC: What is the essence?
According to the Official Securities and Exchange Commission Press Release The company and 13 other entities are being sued for operating an unregistered exchange and mixing client funds through Binance-related companies.
The regulator also claims that Binance had knowledge of the regulations around the exchange and securities but chose to ignore these laws, putting investors’ money at risk just to maximize profits.
They also highlighted the sale of unregistered securities. The SEC is targeting the company’s “Simple Earn” and “BNB Vault” crypto lending products. These products are part of Binance’s staking service, and with the recent crackdown on staking services by the Securities and Exchange Commission (SEC), they are considered securities by the regulator.
BNB market cap currently at $36.6 billion on the weekend chart: TradingView.com
The SEC also took aim at Binance’s failure to restrict the exchange’s services to US citizens. Just in March, the Commodity Futures Trading Commission (CFTC) alleged The company is in violation of many financial laws, including those aimed at stopping money laundering. The SEC also noted that Binance misled customers through “strategic and targeted laundering trades.”
BNB could not return
Since then, BNB is the only altcoin that has not rebounded since the general downturn in the market. However, analysts still somewhat rising in the short-term capacity of the currency despite the recent market slide.
Source - Coingecko
At the token’s current price point of $235, the BNB bulls should defend the support at $234 to target higher peaks in the short term as long as the market does not receive bearish news. But for the time being, it looks like the weight of the bears will defeat any attempted bullish breakout.
However, if the bulls are able to defend this support level, a return to the $300 price point may be possible. Despite the optimism in the market, the developments in the lawsuit will certainly affect BNB in the long run.
Featured image from Protos