Key Points

  • The crypto market has crashed following a high-value civil lawsuit by the U.S. SEC against Binance.US and CEO Changpeng Zhao.
  • Binance has seen $700M withdrawals happen in the time, while Coinbase’s stocks have fallen by over 10%
  • The total crypto market cap has fallen 3.6% to $1.09T in the past 24 hours.

A crypto crash occurs: Binance withdrawals top $700M, Coinbase stock falls 10%, total marketcap falls 3.6%

The Binance lawsuit has triggered a crypto crash, significantly decreasing major cryptos prices. At the moment of writing, Coinbase Stocks were down by 10%, while Binance had suffered a $700M+ in outflows. The total market cap of the crypto market had also fallen by a notable 3.6% 

The U.S. SEC has sued Binance.US and its founder Changpeng Zhao under allegations that it operates as an unregistered securities exchange in the country. The lawsuit also outlines that Binance had been aware of the laws it was breaking but completely disregarded the authorities and carried ahead with the operations, citing a quote by its compliance officer in 2018 that they are knowingly running an unregulated securities exchange.

The markets reacted wildly to this information, with Binance international branch seeing outflows of $700M+ in 24 hours. Conversely, Binance.US also saw an uptick in withdrawals, recording $230M+ in 24 hours.

The complaint by the SEC argues that Binance’s BNB token, Solana (SOL), Cardano (ADA), Polygon (MATIC), Coti (COTI) and Algorand blockchains (ALGO), Filecoin network (FIL), Cosmos hub (ATOM), Sandbox platform (SAND), Axie infinity (AXS) and Decentraland (MANA) are securities.

As such, their values plummeted as the market digested the news. Metaverse coins SAND and MANA had the most significant declines, with SAND collapsing by 13% to $0.52 and MANA following closely with an 11.6% decline to $0.45. Keep watching Fintech Express to get updates on the next crypto crash and other Fintech-related developments.