SEC's Lawsuits Leave Binance Users Unmoved Despite Market-Wide Crypto Price Fluctuations.
Despite the Securities and Exchange Commission's (SEC) lawsuit against Binance, the largest crypto exchange, users appear largely unaffected. Ki Young Ju, the CEO, acknowledged outflows of 10,000 Bitcoin (BTC) from Binance, the largest withdrawal in 2023, but suggests it's less impactful when viewed over a longer time period.
Julio Moreno, research lead at CryptoQuant, also observes that Binance’s Bitcoin Outflows-to-Reserves Ratio remains low.
Crypto prices fell after news of the SEC's lawsuit against Binance and its CEO Changpeng Zhao for alleged violations of investor protection and securities laws. The SEC's complaint focuses on Binance's native token, BNB, and its stablecoin, BUSD, which it alleges were used in unregistered crypto asset securities offers and sales.
The SEC's regulatory efforts extended to Coinbase, a top US crypto exchange, with a lawsuit alleging operations as an unregistered securities exchange, broker, and clearing agency. Despite this second lawsuit, digital asset prices rebounded, with the overall crypto market cap increasing by 4.2% within 24 hours of the announcement
