As the U.S. Securities and Exchange Commission (SEC) initiates a lawsuit against Binance and its founder Changpeng Zhao (CZ), the cryptocurrency market witnessed a downturn of more than 5% against the U.S. dollar, driving the total market cap to $1.13 trillion. Binance’s own BNB token faced the brunt of the backlash, plummeting by 9.7% in relation to the dollar following the SEC’s accusations.

Almost 10,000 Bitcoins Exit Binance in 24 Hours, BNB and CAKE Encounter Market Setbacks

The news about Binance’s impending legal battle with the U.S. securities regulator prompted a negative reaction across the crypto market as the data suggests. Monday saw crypto markets lose nearly $50 billion in value in the wake of Binance’s legal troubles.

Binance’s BNB coin was one of the hardest-hit, shedding 9.7% of its value within a day. It was the second-biggest loser on June 5, only outdone by Solana (SOL), which fell by 10.3%.

The trading activity for BNB on June 5, 2023, was quite intense, registering about $1.52 billion. BNB, presently the sixth most traded cryptocurrency asset globally, also witnessed PancakeSwap (CAKE) enduring a significant 11.7% dip against the U.S. dollar.

The ripple effects of the SEC’s announcement were visible in the significant withdrawal of bitcoin (BTC) from Binance. As per coinglass.com, a substantial 9,802 BTC, valued at approximately $249.36 million, was withdrawn from Binance’s reserves.

Simultaneously, Coinbase saw an inflow of 5,296 BTC. Binance still holds a considerable reserve of cryptocurrency assets worth $54.35 billion, according to metrics from nansen.ai. Included in this total are 17.49 billion Tether (USDT) and 425,365 BTC, equating to a value of around $10.82 billion.

Binance also holds a notable quantity of 3.8 million Ethereum (ETH), valued at $6.8 billion based on current exchange rates. Additionally, Binance recorded $12.46 billion in crypto trading volume over the past 24 hours, making its daily trade volume six times larger than most other exchanges today.

Reacting to the lawsuit, Binance expressed disappointment at the SEC’s decision to pursue litigation instead of seeking cooperation. The exchange vowed to “vigorously” defend its platform. Binance said, “Regrettably, the SEC’s reluctance to engage productively with us only exemplifies the Commission’s misinformed and conscious refusal to offer the much-needed clarity and guidance to the digital asset industry.”

We invite you to share your insights and views on the implications of the lawsuit against Binance and the notable bitcoin outflow from the exchange. Please leave your comments below.

Frequently Asked Questions (FAQs) about Binance Lawsuit Impact

What is the impact of the lawsuit against Binance?

The lawsuit filed by the SEC against Binance has had a significant impact on the cryptocurrency market. Binance’s BNB token experienced a sharp decline, dropping by 9.7% against the dollar. The overall market also saw a downturn of over 5% against the US dollar, with a total valuation of $1.13 trillion.

How much Bitcoin has been withdrawn from Binance?

Within a 24-hour period, approximately 9,802 BTC, valued at $249.36 million, was withdrawn from Binance’s Bitcoin reserves. This substantial outflow indicates a loss of confidence in the exchange following the SEC’s lawsuit.

How did other cryptocurrencies perform during this period?

BNB and CAKE, the tokens associated with Binance, both suffered market losses. BNB dropped by 9.7%, while CAKE experienced an 11.7% decline against the US dollar. Solana (SOL) was the only cryptocurrency that fared worse than BNB, recording a decline of 10.3%.

How did Binance respond to the SEC’s lawsuit?

Binance expressed its disappointment with the SEC’s decision to litigate rather than cooperate. The exchange pledged to vigorously defend its platform, criticizing the SEC for failing to provide much-needed clarity and guidance to the digital asset industry.

What is the current trading volume and asset reserve of Binance?

Binance processed $12.46 billion in crypto trade volume within the last 24 hours, making it one of the largest exchanges in terms of trading activity. The exchange currently holds a reserve of crypto assets amounting to $54.35 billion, including significant amounts of USDT, BTC, and Ethereum.

More about Binance Lawsuit Impact

  • SEC – U.S. Securities and Exchange Commission official website.
  • Binance – Official website of Binance cryptocurrency exchange.
  • BNB – BNB trading pair on Binance exchange.
  • Coinbase – Official website of Coinbase cryptocurrency exchange.
  • Solana (SOL) – Official website of Solana blockchain platform.

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4 comments

CryptoEnthusiast22 June 6, 2023 - 8:06 am

Wow, the SEC sues Binance! Market goes down, BNB tanks. Big trouble for Binance, bro. BTC flowing out like crazy!

Reply
CryptoTrader456 June 6, 2023 - 8:06 am

Binance lawsuit hits hard, BNB and CAKE suffer big losses. BTC outflow from Binance is insane, man. Coinbase gets BTC inflow instead.

Reply
BlockchainFanatic June 6, 2023 - 8:06 am

Binance facing SEC’s legal battle, things look bad. BNB falls fast, BTC withdrawn like crazy. Binance defends, SEC lacks guidance. Crypto world shaken, man!

Reply
CryptoObserver88 June 6, 2023 - 8:06 am

SEC sues Binance, market reacts badly. BNB and CAKE take a hit. BTC flies out of Binance, Coinbase gets some action. Uncertainty looms, mate.

Reply

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