The prices of all cryptocurrencies, led by Bitcoin, have fallen over the past two days as a result of a series of successive news that have severely affected the sector.
According to CNBC, the US Securities and Exchange Commission yesterday accused Binance Holdings Ltd of mishandling funds and lying to regulators.
On Monday, the regulator filed a similar case against Coinbase Global in federal court in New York, alleging that the cryptocurrency company violated its rules.
In a separate statement, the U.S. Securities and Exchange Commission confirmed that it is seeking to freeze Binance U.S. assets (Binance.US) in order to protect client funds because of what it believes the company holds client funds outside the United States, including recovering clients' investments held abroad.
In a similar case, the SEC on Tuesday sued Coinbase Global in federal court in New York, alleging that the cryptocurrency company violated its rules.
In a statement issued by Gary Gensler, Chairman of the Securities and Exchange Commission, he confirmed that "Coinpeace", despite being subject to securities laws, illegally offered to deal between securities, noting that the committee is seeking a ruling requiring "Coinpeace" to comply with securities laws, and give up any illegal gains.
In his statement, he also noted that Zhang Bangzhao, owner of Binance US, was "responsible for deception, conflicts of interest, lack of transparency and deliberate circumvention of the law," and said, "Binance US not only knew the rules, but deliberately circumvented them, putting customers and investors at risk."
As a result, Bitcoin fell by about 2.9% to reach $26,458 today morning in New York, losing its market value of about $46 billion. Binance Coin, the cryptocurrency of the world's largest digital asset exchange, fell 5.2% to about $285.
Over the past two days, Coinbase's stock has fallen 15% to $52 in the morning in New York.
This morning, the court accepted the case against American star Kim Kardashian, in which she was accused of defrauding investors in a cryptocurrency project called "Ethereum Max" by inflating the value of the currency and obtaining money to promote it.
These issues reflected the optimism that prevailed in the cryptocurrency sector last month, as Bitcoin prices have risen significantly since the beginning of 2023 supported by expectations that the Federal Reserve will temporarily stop raising interest rates.
Loss of momentum
Analysts at Yahoo Finance believe that cryptocurrencies may lose momentum to a large extent in the coming period, in light of the risks that pursue them, which portends further declines in trading volumes, at a time when Binance lost a quarter of its market share in the past three months due to legal prosecutions and attempts to regulate the global sector.
The platform accounted for 57.5% of the average monthly volume on the world's cryptocurrency exchanges in February, and the share has now fallen to just 43%.
In a tweet on the company's official Twitter website, Binance said it would vigorously defend its platform and called the request for a temporary restraining order in federal court "unjustified."
Binance US confirmed that "users' assets are safe and secure, the platform continues to operate at full capacity, and deposits and withdrawals are taking place as usual."
This afternoon, the SEC filed a motion seeking a TRO and preliminary injunction against https://t.co/AZwoBOgsqS attempting to, amongst other things, freeze https://t.co/AZwoBOgsqS corporate assets. User assets remain safe and secure and the platform continues to be fully...
— Binance.US 🇺🇸 (@BinanceUS) June 6, 2023