At the time of yesterday, when the Crypto market had access 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 bottle of new wine”. ————————————— ***Binance violates the Securities Law** * On June 5, the US Securities and Exchange Commission (SEC) on June 5 sued Binance and CEO Changpeng Zhao. Specifically, the allegation that the company operated an exchange and sold unregistered securities, artificially inflated trading volumes, secretly controlled clients’ assets, distorted the measures transaction control and some other violations. ***Past SEC Allegations*** If we look a little further into the past, this is not the first time the SEC has brought allegations of securities violations against a Crypto company. In 2020, the SEC sued Ripple Labs alleging that $XRP is an unregistered security. In February 2023, the SEC sued Paxos for the same allegation against $BUSD ***Market Impact*** Almost immediately, the Crypto market reacted negatively as the entire market crashed. sell 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 now more shaky than ever.
Source: Collector
