← Go back Jun 06, 2023
Bitcoin flounders as crypto exchange giants Binance and Coinbase are both sued by US regulator Binance and Coinbase are among the world's largest cryptocurrency exchanges The SEC has sued both exchanges for mishandling funds Price of Bitcoin and Ethereum tumbled since the news By Angharad Carrick For This Is Money Published: 07:50 EDT, 6 June 2023 | Updated: 11:37 EDT, 6 June 2023 e-mail 21 shares 36 View comments Leading cryptocurrencies have taken a hit after the US regulator announced plans to sue leading exchanges Binance and Coinbase amid a wider crackdown on the industry. Investors have pulled around $790million from Binance and its US affiliate in the last 24 hours, according to data firm Nansen. On Monday, the US Securities and Exchange Commission (SEC) sued Binance, its chief executive Changpeng Zhao and the operator of US affiliate Binance.US over a 'web of deception' to evade US securities laws. Crypto crackdown: The US regulator has sued Binance and its CEO Changpeng Zhao (pictured) for mishandling funds The regulator alleged in 13 charges that the exchange artificially inflated its trading volumes, diverted customer funds and failed to restrict US customers from its platform. SEC chair said: 'They attempted to evade US securities laws by announcing sham controls that they disregarded behind the scenes so they could keep high-value US customers on their platforms. 'The public should beware of investing any of their hard-earned assets with or on these unlawful platforms.' RELATED ARTICLES Previous 1 Next MPs say cryptocurrency has 'no intrinsic value' and call for... What's the point of Britcoin? Why the Treasury and Bank of... Share this article Share Binance said it was 'disheartened' by the decision to sue having 'actively cooperated with the SEC's investigations'. 'All user assets on Binance and Binance affiliate platforms, including Binance.US, are safe and secure, and we will vigorously defend against any allegations to the contrary.' A day later, the SEC announced it had sued Coinbase for violating federal securities laws. The SEC said Coinbase had never registered as a broker, national securities exchange, or clearing agency, and had therefore evaded its disclosure rules. Shares in the Nasdaq-listed exchange are trading down 13.7 per cent this afternoon at $50.60. The filings comes as regulators pledge to use existing laws to weed out fraudulent activity in the crypto industry, following the collapse of Binance rival FTX last November. Bitcoin fell 5 per cent following the news of the Binance lawsuit, its worst daily decline since mid-April. The price has recovered somewhat this afternoon to trade at $25,924, despite the Coinbase news, but it marks a significant decline since last June when it was trading at $31,351. Ethereum is trading down 2.66 per cent at $1,832, while Binance's BNB cryptocurrency fell to a near three-month low of $278.20 after the price tumbled 9.2 per cent on Monday. Laith Khalaf, head of investment analysis at AJ Bell said: 'The robust language used by the SEC, along with the lengthy list of charges, suggests this latest fiasco to engulf the crypto market is going to rumble on for some time. 'The price of Bitcoin took a tumble on the back of the news, and at the moment it feels like the crypto bubble is suffering death by a thousand punctures.' The Commodity Futures Trading Commission filed its own lawsuit against Binance in March, accusing the exchange, which is registered in the Cayman Islands, of operating in the US illegally. It is also under investigation by the Department of Justice. The UK's own regulator sounded the alarm on Binance two years ago, warning consumers the exchange did not hold 'any form' of permission to conduct regulated activity in the UK. DIY INVESTING PLATFORMS Stocks & shares Isa Stocks & shares Isa Easy investing Capital at risk. Isa rules & T&Cs apply. Investment ideas Free fund dealing Free fund dealing 0.45% account fee capped for shares Flat-fee investing No fees £9.99 monthly fee One free £5.99 trade per month Social investing Social investing Share investing 30+ million global community Model portfolios Investment account Free fund dealing Free financial coaching Affiliate links: If you take out a product This is Money may earn a commission. This does not affect our editorial independence. > Compare the best investing platform for you Share or comment on this article: Bitcoin flounders as Binance and Coinbase sued by US regulator e-mail 21 shares Add comment Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence. Comments 74 Share what you think Newest Oldest Best rated Worst rated View all The comments below have not been moderated. View all The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. Add your comment Enter your comment By posting your comment you agree to our house rules . Submit Comment Clear Close Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. No Yes Close Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy .
Read more: dailymailuk
