Crypto Prices crashing after SEC Sues Binance, These Presales Still Pumping – Here's Why
Cryptocurrency markets just experienced a big intraday drop in response to the US Securities and Exchange Commission (SEC) revealing that it has sued Binance, its US subsidiary Binance.US and the exchange’s founder Changpeng Zhao (CZ).
Bitcoin (BTC) was last trading close to 5% lower on the day in the $25,800 area, having just hit its lowest levels since March under $25,500.
Ether (ETH), meanwhile, was last down close to 4% on the day and changing hands just above $1,800.
The new SEC lawsuit, which is suing Binance, Binance.US and CZ on thirteen charges, accuses the exchange of offering unregistered securities to the general public, naming the BNB and BUSD tokens.
“Through thirteen charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law,” SEC Chairman Gary Gensler said in a statement.
The lawsuit also alleged that the a number of other coins offered by Binance to the general public are also unregistered securities, including Solana (SOL), Cardano (ADA), Algorand (ALGO), Coti (COTI), Cosmos (ATOM), Axie Infinity Shards (AXS), Filecoin (FIL), The Sandbox (SAND) and Decentraland (MANA).
In the last 24 hours, BNB, ADA, SOL, MATIC and ATOM were all down between 6-9%, as per CoinGecko.
The latest enforcement action by the SEC against Binance adds to the cloud of uncertainty faced by the crypto industry in the US, the world’s largest market.
And the lawsuit comes after the US Commodity Futures Trading Commission (CFTC) announced a similar lawsuit against Binance, accusing the exchange of knowingly operating an unregistered digital commodities exchange and offering unregistered crypto derivatives products in the US.
The key
Read more on cryptonews.com
