Cryptocurrencies suffered strong losses in the last 24 hours, and lost their market value of about $ 46 billion, after the US Securities and Exchange Commission accused Binance and its president, Chang Bing Zhao, of mishandling funds and circumventing laws.
According to the CoinMarketCap platform, the market value of cryptocurrencies fell by about 3.8 percent, to about $ 1.09 trillion, while these currencies witnessed almost collective declines.
Bitcoin, the largest cryptocurrency, lost its market value within one day, about 3.9 percent of its value, to fall to about $ 25.8 thousand, and Ethereum 3 percent, to fall to $ 1816.
As for Binance, the cryptocurrency associated with the Binance platform and the fourth digital currency in global valuation, it fell by 8 percent in one day to about $ 277.
The Securities and Exchange Commission filed a lawsuit on Monday against the world's largest digital asset exchange, Binance, and its president.
According to the document filed before a federal court in Washington, Binance allowed US residents to use its platform while the company is not registered with the US authorities.
This move is a new attack on the Binance platform by the US Financial Products Regulatory Authority, CFTC, since the end of March for similar reasons.
Our team is ready to ensure the stability of our systems including withdrawals and deposits,” Zhang Bing Zhao, the company’s president, wrote on his Twitter account.
We will respond (to the subpoena) as soon as we see the document.
The SEC takes issue with Binance not registering it, its cryptocurrencies such as BNB, or its other financial products in the United States.
The regulator asserts that, contrary to what Binance has made public, its US branch and the funds deposited in it by customers were subject to the control of the parent company.
Gary Gensler, Chairman of the Securities and Exchange Commission, said in a statement that Changbang Zhao and entities affiliated with Binance are responsible for fraud, conflicts of interest, lack of transparency, and willful circumvention of the law.
Not only did Zhao and his platform know the rules, he explained, he chose to deliberately circumvent them, putting clients and investors at risk.
Gensler months ago adopted a punitive approach with major cryptocurrency platforms that are not registered with the Securities and Exchange Commission.
In the absence of a vote on a regulatory framework in Congress, the cryptocurrency market is regulated by the Securities and Exchange Commission, which the CFTC objects to.
