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NewsSharp drops in cryptocurrencies after US accusations against “Binance”

Sharp drops in cryptocurrencies after US accusations against “Binance”

According to the “Coin MarketCap” platform, the market value of cryptocurrencies fell by around 3.8%, to around $1.09 trillion, as these currencies experienced almost collective declines.

Bitcoin, the largest cryptocurrency, lost its market value in one day, about 3.9% of its value, to fall to around $25.8 thousand, and Ethereum 3%, to fall to $1,816.

As for Binance Coin, the cryptocurrency associated with the Binance platform and the fourth digital currency in global valuation, it fell 8% in one day to around $277.

On Monday, the Securities and Exchange Commission filed a lawsuit against the world’s largest digital asset exchange, Binance, and its chairman.

According to the document filed in federal court in Washington, Binance allowed US residents to use its platform despite the company not being registered with US authorities.

This decision is a new attack against the Binance platform by the US Financial Products Regulatory Authority, the CFTC, since late March for similar reasons.

“Our team is ready to ensure the stability of our systems, including withdrawals and deposits,” Changpeng Zhao, chairman of the company, wrote on his Twitter account.

“We will respond (to the summons) as soon as we see the document,” he added.

The SEC disputes that Binance does not register it, its cryptocurrencies such as BNB or its other financial products in the United States.

The regulator says that, contrary to what Binance made public, its US branch and the funds deposited into it by customers were subject to the control of the parent company.

“Changbang Zhao and Binance-affiliated entities are responsible for fraud, conflicts of interest, lack of transparency, and willful circumvention of the law,” Gary Gensler, chairman of the Securities and Exchange Commission, said in a statement.

“Not only did Zhao and his platform know the rules, he chose to deliberately circumvent them, putting customers and investors at risk,” he said.

Gensler took a punitive approach months ago with major cryptocurrency platforms that are not registered with the Securities and Exchange Commission.

With no vote on a regulatory framework in Congress, the cryptocurrency market is regulated by the Securities and Exchange Commission, which the CFTC opposes.

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Arab Desk
Arab Desk
The Eastern Herald’s Arab Desk validates the stories published under this byline. That includes editorials, news stories, letters to the editor, and multimedia features on easternherald.com.

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