The price of bitcoin plummets after the SEC’s lawsuit against Binance.
The charges brought against the entity are numerous. Binance faces up to 13 charges. The lawsuit describes ambiguous and lax actions to keep US customers on its offshore licence, with customers opening their accounts on a non-US licence called Binance Holdings, rather than on the authorised Binance.US.
They are also accused of market manipulations using their subsidiary and the custodian of the funds in Market Making shares.
This brings the total number of lawsuits against Binance in the US to two in recent months.
At the end of March, the Commodity Futures and Trading Commission (CFTC) accused Binance of violating rules on trading and distribution of certain derivatives products. Binance allegedly used and promoted the use among its customers of VPSs with which to access certain products with a false location, products that were not authorised in the United States.
Superpower warfare.
Some might think that the business relations between the US and Binance are influenced by US diplomatic relations with China.
Even shortly before the first official indictment against Binance, the CEO of the entity himself announced that they would not continue with certain investment projects on some US companies as a deteriorating prelude to their relations with the US government.
Market movements?
The effect that the news of the Binance lawsuit has had on the market has been considerably shocking. Bitcoin has fallen sharply against the dollar, dropping more than 10% to around $25,500.
This shows the dependence of this currency on the world’s largest cryptoasset exchange.
On the other hand. It is extremely tempting to look at the current price levels as potential buying opportunity areas.
I share the chart with the audience.
This post was last modified on Jun 06, 2023, 14:23 BST 14:23