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Following the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Binance and its founder Changpeng Zhao (CZ), the crypto economy experienced a substantial decline of over 5% against the U.S. dollar, reaching a total valuation of $1.13 trillion. Among the leading digital currencies, Binance’s BNB token suffered significant losses, dropping by 9.7% against the dollar in response to the SEC’s allegations.
9,802 Bitcoin Leaves Binance in 24 Hours, BNB and CAKE Suffer Market Losses
The market’s response to the news of Binance being sued by the U.S. securities regulator has been far from positive, as indicated by current data. On Monday, crypto markets witnessed a substantial decline of approximately $50 billion in value following the announcement regarding Binance.
Among the major casualties of the day, Binance’s BNB coin stood out, experiencing a significant loss of 9.7% within a 24-hour timeframe. It ranked as the second-largest loser on June 5, trailing only behind solana (SOL), which recorded a decline of 10.3%.
During Monday’s trading sessions, BNB, currently the sixth-largest cryptocurrency asset in terms of global trade volume, witnessed approximately $1.52 billion in trading activity. Meanwhile, pancakeswap (CAKE), experienced a substantial decline of 11.7% against the U.S. dollar.
The impact of the SEC’s announcement can also be seen in the amount of bitcoin (BTC) that has been withdrawn from Binance. According to coinglass.com statistics, a significant sum of 9,802 BTC, valued at $249.36 million, has been moved out from Binance’s bitcoin reserves.
While Binance witnessed an outflow of 9,802 BTC, Coinbase saw an inflow of 5,296 BTC during the same period. As of now, Binance boasts a reserve of crypto assets, amounting to $54.35 billion, as reported by nansen.ai metrics. Among these holdings, 17.49 billion tether (USDT) and 425,365 BTC, valued at $10.82 billion, are included.
Additionally, Binance holds a substantial amount of 3.8 million ethereum (ETH), worth $6.8 billion based on the current exchange rates for ether. Moreover, Binance processed $12.46 billion in crypto trade volume in the last 24 hours. This places Binance’s current 24-hour trade volume at six times larger than that of most exchanges in the market today.
After Binance was sued by the U.S. securities regulator, the exchange responded by noting it is “disheartened” by the SEC’s choice to litigate rather than cooperate. “We intend to defend our platform vigorously,” Binance said on Monday. “Unfortunately, the SEC’s refusal to productively engage with us is just another example of the Commission’s misguided and conscious refusal to provide much-needed clarity and guidance to the digital asset industry.”
What are your thoughts on the impact of the lawsuit against Binance and the significant outflow of bitcoin from the exchange? Share your thoughts and opinions about this subject in the comments section below.