Cryptocurrency markets experienced a big intraday drop, a day after US authorities charged cryptocurrency giant Binance with securities law violations and lying to regulators as per a Bloomberg report.
Bitcoin fell over 6% and was trading around the $25,800 mark. This after having just hit its lowest levels since March under $25,500. Meanwhile, Ethereum, fell around 4%.
According to Bloomberg, Binance Coin, the native token of the ecosystem of the world’s biggest digital asset exchange, fell as much as 13%. Bitcoin accounts for almost 50% of the value of the $1.2 trillion crypto market, according to data from CoinMarketCap. Binance Coin is the fourth-largest token, with a market value of around $43 billion. Binance handles around 50% of all crypto trading volume.
Binance violating securities
Binance allegedly permitted US residents to trade, even though the platform is not registered in the United States as a securities exchange. The case also alleges Binance misused customer funds.
The Securities and Exchange Commission filed a civil complaint listing 13 charges involving platforms and other investment entities controlled by founder Changpeng Zhao, who was once seen as the archrival of disgraced crypto tycoon Sam Bankman-Fried.
The SEC case comes on the heels of charges in March by another US regulator, the Commodities Futures and Exchange Commission.
Zhao and Binance publicly claimed that US customers were barred from transacting on Binance.com, but the platform "secretly" allowed high-value customers to keep trading, the SEC said.