{"id":3468,"date":"2023-06-15T09:44:06","date_gmt":"2023-06-15T09:44:06","guid":{"rendered":"https:\/\/digitalcoinprice.com\/blog\/?p=3468"},"modified":"2025-05-05T21:18:03","modified_gmt":"2025-05-05T15:48:03","slug":"the-binance-is-secs-biggest-victim","status":"publish","type":"post","link":"https:\/\/digitalcoinprice.com\/blog\/the-binance-is-secs-biggest-victim","title":{"rendered":"This is how Binance became the SEC&#8217;s most prominent victim"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-flat ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Content<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #223c50;color:#223c50\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #223c50;color:#223c50\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/digitalcoinprice.com\/blog\/the-binance-is-secs-biggest-victim\/#Glut_in_the_market\" title=\"Glut in the market\">Glut in the market<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/digitalcoinprice.com\/blog\/the-binance-is-secs-biggest-victim\/#The_market_share_of_BinanceUS_has_declined\" title=\"The market share of Binance.US has declined\">The market share of Binance.US has declined<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/digitalcoinprice.com\/blog\/the-binance-is-secs-biggest-victim\/#BinanceBNB_Price_Prediction_for_2023\" title=\"Binance(BNB) Price Prediction for 2023\">Binance(BNB) Price Prediction for 2023<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/digitalcoinprice.com\/blog\/the-binance-is-secs-biggest-victim\/#BNB_Price_Prediction_%E2%80%93_2024_2025_2026_2027_2028_2029_2030\" title=\"BNB Price Prediction &#8211; 2024, 2025, 2026, 2027, 2028, 2029, 2030\">BNB Price Prediction &#8211; 2024, 2025, 2026, 2027, 2028, 2029, 2030<\/a><\/li><\/ul><\/nav><\/div>\n<p>Following a lawsuit filed by the Securities and Exchange Commission against the world&#8217;s largest cryptocurrency exchange Monday for running an illegal operation, Binance&#8217;s cryptocurrency dropped nearly 10% in one day; since regulators continue to crack down on crypto firms, Binance&#8217;s cryptocurrency dropped almost 10% in one day.<\/p>\n<p>By 5 PM Monday, <strong><a href=\"https:\/\/digitalcoinprice.com\/coins\/bnb\" target=\"_blank\" rel=\"noopener\">Binance Coin<\/a><\/strong> was down 9.82% to a two-month low of $275.29, down nearly 5% since the SEC announced its lawsuit. The suit follows a lawsuit filed by the federal Commodity Futures Trading Commission against the crypto exchange<br \/>\nearlier this year.<\/p>\n<p>In the past week, BNB&#8217;s value dropped nearly 12%; since April, it has fallen more than 18%.<\/p>\n<figure id=\"attachment_3476\" aria-describedby=\"caption-attachment-3476\" style=\"width: 1100px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-3476 size-full\" src=\"https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2023\/06\/changes-in-market-cap-on-Binance.us_.jpg\" alt=\"changes in market cap on Binance.us\" width=\"1100\" height=\"587\" srcset=\"https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2023\/06\/changes-in-market-cap-on-Binance.us_.jpg 1100w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2023\/06\/changes-in-market-cap-on-Binance.us_-480x256.jpg 480w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2023\/06\/changes-in-market-cap-on-Binance.us_-1024x546.jpg 1024w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2023\/06\/changes-in-market-cap-on-Binance.us_-768x410.jpg 768w\" sizes=\"auto, (max-width: 1100px) 100vw, 1100px\" \/><figcaption id=\"caption-attachment-3476\" class=\"wp-caption-text\">Source: Kaiko<\/figcaption><\/figure>\n<p>As <strong><a href=\"https:\/\/digitalcoinprice.com\/coins\/bitcoin\" target=\"_blank\" rel=\"noopener\">Bitcoin<\/a> <\/strong>fell over 5.5% to $25,620 on Monday, Ethereum dropped nearly 5% to $1,803. <strong><a href=\"https:\/\/digitalcoinprice.com\/coins\/dogecoin\" target=\"_blank\" rel=\"noopener\">Dogecoin<\/a> <\/strong>fell by more than 8% to just under 7 cents, and Binance was not the only crypto sinking on Monday: Bitcoin fell more than 7.1% to nearly $25,620, while Ethereum dropped almost 5% to $1,803, and Dogecoin fell more than 8% to less than $7.<\/p>\n<p>A company owned by Zhao, Sigma Chain, is accused of misusing customers&#8217; funds by Binance and its founder Changpeng Zhao. This entity engaged in &#8221; manipulative trading &#8221; to inflate the volume of crypto exchanges, this entity engaged in &#8220;manipulative trading.&#8221; Zhao and Binance claimed their American subsidiaries operated independently, but they controlled them behind the scenes. There is a claim that some United States customers have been allowed to use Binance&#8217;s main exchange. According to Zhao, the suit is &#8220;unjustified,&#8221; the SEC has taken several &#8220;misguided actions&#8221; against cryptocurrency.<\/p>\n<p>While still up 71% yearly, Coinbase shares fell 10.5% on Monday to $57.69.<\/p>\n<p class=\"blog-post-sec-title\">How much does <a href=\"https:\/\/digitalcoinprice.com\/converter\/bnb\/usd\/1\">1 BNB currently cost in USD?<\/a><\/p>\n<p>Despite crypto markets remaining shaky since last fall amid concerns about a crypto winter, Binance has faced several legal troubles in recent months. Chicago federal court received a complaint filed by the CFTC in March. U.S. residents are accused of benefiting from crypto futures and derivatives offered by Binance and Zhao without the CFTC&#8217;s approval.<\/p>\n<p>Also alleged in the suit is that Binance&#8217;s former chief compliance officer Samuel Lim aided and abetted the company&#8217;s violations of U.S. and international laws. The company also faced scrutiny because of a backroom asset switch involving $1.8 billion between August and December 2022 without informing customers. Forbes reported in February that these customers received 100% backed tokens. As with FTX, the shifting was the culmination of internal changes. A non-binding agreement Binance had to acquire assets outside the U.S. was canceled in November.<\/p>\n<p>In response to FTX&#8217;s collapse and its users&#8217; withdrawal of billions of dollars worth of cryptocurrency, the company ceased operations, citing liquidity problems &#8220;beyond our control and ability to help.&#8221;.<\/p>\n<p class=\"blog-post-sec-title\">Get more profit through the <a href=\"https:\/\/digitalcoinprice.com\/sip-calculator\">BNB SIP strategy<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Glut_in_the_market\"><\/span>Glut in the market<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In financial markets, market depth refers to how easily an exchange can accommodate large orders without significantly affecting the security price. This indicator measures market liquidity.<\/p>\n<p>Following the <a href=\"https:\/\/www.sec.gov\/news\/pressreleases\" target=\"_blank\" rel=\"noopener\">SEC&#8217;s announcement<\/a> that U.S. assets were being frozen, market makers, who provide the most liquidity, vacated the market quickly. That infamous story repeats itself with FTX.<\/p>\n<p>There was reduced liquidity on the exchange, leading to a rise in <strong><a href=\"https:\/\/digitalcoinprice.com\/coins\/bitcoin\" target=\"_blank\" rel=\"noopener\">Bitcoin [BTC] prices<\/a><\/strong>. The price of BTC\/USD on Binance.US at the time of publication was $26,316, $234 higher than that of BTC\/USD on Coinbase, the largest U.S. crypto exchange.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_market_share_of_BinanceUS_has_declined\"><\/span>The market share of Binance.US has declined<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After announcing on June 13 that all USD trading on the platform would be suspended, Binance&#8217;s latest decision.US proved fatal. Investors rushed to cash out their BTC after the exchange requested they withdraw their dollars by June 13.<\/p>\n<figure id=\"attachment_3470\" aria-describedby=\"caption-attachment-3470\" style=\"width: 1100px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-3470 size-full\" src=\"https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2023\/06\/US-exchange-market-share.jpg\" alt=\"US exchange market share\" width=\"1100\" height=\"587\" srcset=\"https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2023\/06\/US-exchange-market-share.jpg 1100w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2023\/06\/US-exchange-market-share-480x256.jpg 480w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2023\/06\/US-exchange-market-share-1024x546.jpg 1024w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2023\/06\/US-exchange-market-share-768x410.jpg 768w\" sizes=\"auto, (max-width: 1100px) 100vw, 1100px\" \/><figcaption id=\"caption-attachment-3470\" class=\"wp-caption-text\">Source: Kaiko<\/figcaption><\/figure>\n<p>The platform&#8217;s trading activity also dropped sharply as a result. Compared with other U.S. trading platforms, <a href=\"https:\/\/www.binance.us\/\" target=\"_blank\" rel=\"nofollow noopener\">Binance.US&#8217;s<\/a> volume dropped the most. In April, the exchange had a 20% share of the pie. As of June 12, that share fell to under 5%.<\/p>\n<p>Interestingly, Coinbase&#8217;s market share increased from 46% to 64% in a week, with no good reason to explain why. Due to the concentration of 80% of Kaiko&#8217;s business in the U.S. market, Kaiko&#8217;s estimates predict it will lose the most at the end of the game.<\/p>\n<p>For the U.S. crypto scene to survive, Coinbase is expanding into other markets. Armstrong could move the exchange&#8217;s headquarters to the United Kingdom if the regulatory situation in the United States does not improve.<\/p>\n<p class=\"blog-post-sec-title\"><a href=\"https:\/\/digitalcoinprice.com\/blog\/what-might-happen-if-you-invest-100-in-bitcoin-today\">What happens if you invest just $100 in Bitcoin (BTC)?<\/a><\/p>\n<h3 class=\"h2\"><span class=\"ez-toc-section\" id=\"BinanceBNB_Price_Prediction_for_2023\"><\/span>Binance(BNB) Price Prediction for 2023<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table class=\"table-bordered text-center\">\n<thead class=\"bg-warning\">\n<tr>\n<th>Month<\/th>\n<th>Minimum Price<\/th>\n<th>Average Price<\/th>\n<th>Maximum Price<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bnb\/2023\" target=\"_blank\" rel=\"noopener\">Jan 2023<\/a><\/td>\n<td>$243.41<\/td>\n<td>$286.45<\/td>\n<td>$321.10<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bnb\/2023\" target=\"_blank\" rel=\"noopener\">Feb 2023<\/a><\/td>\n<td>$333.36<\/td>\n<td>$396.26<\/td>\n<td>$444.19<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bnb\/2023\" target=\"_blank\" rel=\"noopener\">Mar 2023<\/a><\/td>\n<td>$361.39<\/td>\n<td>$396.05<\/td>\n<td>$451.96<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bnb\/2023\" target=\"_blank\" rel=\"noopener\">Apr 2023<\/a><\/td>\n<td>$383.84<\/td>\n<td>$417.33<\/td>\n<td>$458.11\/td&gt;<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bnb\/2023\" target=\"_blank\" rel=\"noopener\">May 2023<\/a><\/td>\n<td>$292.14<\/td>\n<td>$132.43<\/td>\n<td>$402.33<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bnb\/2023\" target=\"_blank\" rel=\"noopener\">Jun 2023<\/a><\/td>\n<td>$211.50<\/td>\n<td>$381.48<\/td>\n<td>$518.12<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bnb\/2023\" target=\"_blank\" rel=\"noopener\">Jul 2023<\/a><\/td>\n<td>$204.15<\/td>\n<td>$378.70<\/td>\n<td>$503.51<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bnb\/2023\" target=\"_blank\" rel=\"noopener\">Aug 2023<\/a><\/td>\n<td>$194.00<\/td>\n<td>$372.65<\/td>\n<td>$519.51<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bnb\/2023\" target=\"_blank\" rel=\"noopener\">Sep 2023<\/a><\/td>\n<td>$207.19<\/td>\n<td>$391.84<\/td>\n<td>$517.13<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bnb\/2023\" target=\"_blank\" rel=\"noopener\">Oct 2023<\/a><\/td>\n<td>$209.58<\/td>\n<td>$438.12<\/td>\n<td>$496.50<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bnb\/2023\" target=\"_blank\" rel=\"noopener\">Nov 2023<\/a><\/td>\n<td>$195.32<\/td>\n<td>$505.96<\/td>\n<td>$519.23<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bnb\/2023\" target=\"_blank\" rel=\"noopener\">Dec 2023<\/a><\/td>\n<td>$209.65<\/td>\n<td>$451.65<\/td>\n<td>$506.42<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 class=\"h2\"><span class=\"ez-toc-section\" id=\"BNB_Price_Prediction_%E2%80%93_2024_2025_2026_2027_2028_2029_2030\"><\/span>BNB Price Prediction &#8211; 2024, 2025, 2026, 2027, 2028, 2029, 2030<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table class=\"table-bordered table-light table-sm text-centre\">\n<thead class=\"bg-warning\">\n<tr>\n<th>Month<\/th>\n<th>Minimum Price<\/th>\n<th>Average Price<\/th>\n<th>Maximum Price<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bnb\/2024\" target=\"_blank\" rel=\"noopener\">2024<\/a><\/td>\n<td>$506.41<\/td>\n<td>$565.21<\/td>\n<td>$603.32<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bnb\/2025\" target=\"_blank\" rel=\"noopener\">2025<\/a><\/td>\n<td>$694.34<\/td>\n<td>$794.93<\/td>\n<td>$851.70<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bnb\/2026\" target=\"_blank\" rel=\"noopener\">2026<\/a><\/td>\n<td>$904.78<\/td>\n<td>$1,072.52<\/td>\n<td>$1,082.55<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bnb\/2027\" target=\"_blank\" rel=\"noopener\">2027<\/a><\/td>\n<td>$904.78<\/td>\n<td>$1,072.52<\/td>\n<td>$1,082.55<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bnb\/2028\" target=\"_blank\" rel=\"noopener\">2028<\/a><\/td>\n<td>$1,118.83<\/td>\n<td>$1,257.41<\/td>\n<td>$1,290.86<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bnb\/2029\" target=\"_blank\" rel=\"noopener\">2029<\/a><\/td>\n<td>$1,588.40<\/td>\n<td>$1,701.85<\/td>\n<td>$1,728.64<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bnb\/2030\" target=\"_blank\" rel=\"noopener\">2030<\/a><\/td>\n<td>$2,296.33<\/td>\n<td>$2,432.19<\/td>\n<td>$2,472.51<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p class=\"blog-post-sec-title\"><a href=\"https:\/\/digitalcoinprice.com\/blog\/top-11-ways-to-make-passive-income-with-bitcoin-btc-in-india\">Top 11 ways to make passive income with Bitcoin (BTC) in India<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Following a lawsuit filed by the Securities and Exchange Commission against the world&#8217;s largest cryptocurrency exchange Monday for running an illegal operation, Binance&#8217;s cryptocurrency dropped nearly 10% in one day; since regulators continue to crack down on crypto firms, Binance&#8217;s cryptocurrency dropped almost 10% in one day. By 5 PM Monday, Binance Coin was down [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":3469,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,36],"tags":[98,99,93,97],"class_list":["post-3468","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news-updates","category-altcoins","tag-binance","tag-bnb","tag-sec","tag-this-is-how-binance-became-the-secs-most-prominent-victim"],"_links":{"self":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/3468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/comments?post=3468"}],"version-history":[{"count":10,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/3468\/revisions"}],"predecessor-version":[{"id":5150,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/3468\/revisions\/5150"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media\/3469"}],"wp:attachment":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media?parent=3468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/categories?post=3468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/tags?post=3468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}