Bitcoin, Ether Plummet As CFTC Books CZ
By Laxmikant khanvilkar
Leading cryptocurrencies including Bitcoin, Ethereum, and others plummeted, after the U.S. Commodity Futures Trading Commission (CFTC), the market regulator, sued Binance and its founder Changpeng Zhao alleging that the exchange knowingly offered unregistered crypto derivatives products in the U.S., a violation of federal law.
At one point in time, Bitcoin (BTC) plunged below $27,000. The BTC/USD trading pair on the Coinbase exchange dropped to $26,525, its lowest point since March 17.
Bitcoin was recently trading at $27,200 level. ETH, the second-largest cryptocurrency, fell below $1,700 before recently rebounding to $ 1,710.
The sharp cut in prices of various crypto projects has impacted total market capitalisation.
Over the last 24 hours, the global crypto market capitalization has decreased by 2.97%, to $1.13 tn. The total crypto market volume has increased by 34.76%, reaching $42.43 bn. Of that volume, 8.66% is attributed to DeFi, and 90.29% is attributed to stablecoins. Bitcoin’s dominance has slightly decreased over the day, to 46.24%.
The CFTC claims Binance evaded its obligations by not correctly registering with it. The complaint also alleges Samuel Lim, Binance’s former chief compliance officer, aided and abetted Binance’s violations.
The agency is seeking the repayment of ill-gotten gains, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of regulations.
The suit against BNB has sent some crypto-related stocks lower. Shares of exchange Coinbase (COIN) and bitcoin miner Marathon Digital Holdings (MARA) slid by 8% and 6%, respectively.
In a response to the U.S. government filing for stay, the federal judge paused Voyager’s efforts to sell its assets to Binance.US.
Elsewhere, the Twitter account for Arbitrum, the Ethereum rollup platform, was suspended on Monday. The Arbitrum Foundation said Twitter flagged the account in error, however, and it was reinstated within a few hours.
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