Crypto prices have taken a nosedive as the sector grapples with the fallout from the U.S Securities and Exchange Commission’s (SEC) lawsuit against Binance, one of its most prominent exchanges, and its billionaire chief Changpeng Zhao. The SEC accused them of misusing investor funds and deceiving investors in an “expansive web of deception.”
The news sent shockwaves through crypto markets worldwide, causing Bitcoin to plunge by more than 10% on Thursday morning. Other major cryptocurrencies such as Ethereum also took a hit following this announcement. This is not surprising considering that Binance is one of the largest cryptocurrency exchanges in terms world wide with millions of daily users trading billions worth of digital assets every day.
It remains unclear what impact this will have on other crypto companies. Still, it certainly has caused some jitters among investors who are now questioning whether their money is safe when investing in these digital assets or if they could be subject to similar legal action from regulators like SEC in the future too. It looks like only time will tell how things play out for both Binance and other players within the industry but at least for now, it appears that everyone should proceed cautiously before making any further investments into cryptos until the situation becomes clearer over the coming weeks or months ahead.
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