Crypto News

SEC-Induced Panic Saw $53 Billion Wiped Off Crypto Markets

The total crypto market cap dropped by $53 billion as news of the US Securities and Exchange Commission (SEC) filing against Binance broke.

On June 5, the SEC charged Binance, its CEO Changpeng Zhao, and related entities with 13 violationsincluding wash trading, evasion of regulations, and the offering of unregistered securities.

binance Said it is disappointed by the complaint and has always worked cooperatively with the regulator’s enquiries. However, it disputed the enforcement action and intended to “with loud“Defend the charges.

A key component of Binance’s defense centers on the SEC’s perceived reluctance to provide regulatory clarity. It further claimed that the company was the victim of an ongoing “regulatory tug of war,“in which government agencies want”Claim jurisdictional grounds from other regulators,

,Unfortunately, the SEC’s refusal to productively engage with us is just another example of the commission’s misguided and deliberate refusal to provide much-needed clarity and guidance to the digital asset industry.,

crypto market crash

The news of the SEC’s filing against Binance stunned the market.

On 5 June, at 16:00 BST, just before this news broke, the total crypto market cap was valued at $1.13 trillion. As word spread, the ensuing dump hit a low of $1.08 trillion about an hour later – equivalent to a drop of $52.7 billion or 4.7%.

Topped out at $1.1 trillion after a bounce. The market has since traded flat as participants ponder the gravity of the situation, particularly allegations that several third-party tokens including ADA, SOL, and Matic were designated as securities in the SEC filing.

biggest winners and losers

Among the top 100, the biggest losers in the past 24 hours were Pepe, The Sandbox and Sui, down 15.2%, 14.8% and 12.7% respectively. Sandbox was named as an unregistered security in an SEC filing.

Kava was the only top 100 coin (excluding stablecoins) to remain in the green during this period, gaining 9.6%.

Market leader bitcoin suffered a peak-to-trough loss of 5% to find support at $25,400. It has since recovered to $25,890, but it is shaping up to retest the $25,600 support.


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