Binance’s Token BNB Plummets As SEC Sues Binance
The announcement of the SEC lawsuit for Binance has caused a decline in the value of Binance Coin (BNB).
By Anna B Kiwanuka
A cryptocurrency created by Binance, BNB has tumbled nearly 10% after the Securities and Exchange Commission sued the world’s largest crypto exchange, Binance on Monday, marking its biggest one-day drop so far this year as U.S. regulators continue to crack down on crypto companies.
The Binance Coin (BNB) fell 9.82% as of 5 p.m. Monday to a two-month low of $275.29, after falling nearly 5% in the first hour since the SEC announced its lawsuit. This is the second civil complaint targeting the crypto exchange in recent months, after an earlier lawsuit from the federal Commodity Futures Trading Commission.
BNB’s value has now dropped nearly 12% over the past week and is down more than 18% since April, according to data from CoinGecko. At the time of writing, BNB is trading at around $277 against USDT, according to CoinMarketCap data.
Following recent events, Binance CEO Changpeng Zhao released a statement reaffirming the company’s commitment to maintaining stable systems, including both withdrawal and deposit functionalities.
Zhao also indicated that an official response from Binance would be provided after the complaint had been reviewed. He noted that the media had obtained the information before the exchange had a chance to respond.
The lawsuit against Binance and the SEC’s classification of BNB as a security will have significant implications for the broader cryptocurrency ecosystem. The outcome of this legal action could substantially impact Binance’s operations and the regulatory landscape surrounding cryptocurrencies in the United States.
According to the allegations, the SEC asserts that Binance and its affiliate BAM Trading operated as an unregistered securities exchange, broker-dealer, and clearing agency. Additionally, the SEC claims that Binance sold unregistered securities, including its native tokens BNB and BUSD.