Yesterday, when the Crypto market had been exposed to the news that Binance was officially sued by the SEC for violating securities laws, the entire market was in the red.
However, if we look further into the past, the other move of the SEC is just “Old wine in old bottles”.
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Binance violates the Securities Law
On June 5, the US Securities and Exchange Commission (SEC) on June 5 sued Binance and its CEO Changpeng Zhao.
Specifically, the allegation that the company operated an exchange and sold unregistered securities, artificially inflated trading volumes, secretly controlled customer assets, distorted the measures transaction control and some other violations.
SEC allegations in the past
If we look back a bit, this is not the first time that the SEC has filed a securities law violation with a Crypto company.
In 2020, the SEC sued Ripple Labs alleging that $XRP is an unregistered security.
In February 2023, the SEC sued Paxos with similar allegations against $BUSD
Impact on the market
Almost immediately, the Crypto market reacted negatively as the entire market sold off.
However, there seems to be a group of parties benefiting from this sell-off.
8 hours before the announcement, there was a huge $BNB short position worth $20M. As we have seen, this short order is now at least 8% ~ $1.6M profit in just 8 hours.
It can be said that the SEC lawsuit against Binance will more or less consume a relatively large amount of resources for this exchange. The crypto market will get used to news like this over time, but with Binance, the number one spot is more shaky than ever.
