By the beginning of June, Binance Coin (BNB) was positioned above $310, but On June 5, the United States Securities and Exchange Commission filed a lawsuit against Changpeng Zhao and Binance.US, which caused a sharp drop in the crypto market, taking BNB to fall from $310 to $275..
Subsequent to this, BNB continued to fall as the days went by, reaching a value of 240.46 on June 19, 2023, representing a 22.43% drop since June 5.when the demand by the regulatory agency occurred.
BNB price from June 5 to 19 – Source: CoinMarketCap
This is not an isolated situation for the BNB token, other cryptocurrencies listed in the SEC lawsuit have suffered a similar scenario in recent weeks. MATIC from Polygon, ADA from Cardano, Sol from Solana, ALGO from Algorand, are a small sample of the effects that these actions against the ecosystem by the SEC have had.
Nonetheless, the ecosystem seems to withstand these attacks. BNB, for its part, is beginning to show a slight price recovery since June 12. On-chain data shows that it has appreciated by 5.31% compared to the 228.67 dollars in which it was located at that time.
BNB price from June 12 to 19 – Source: CoinMarketCap
Reactions and expectations
From the first moment the news of the lawsuit against Binance was released, the reactions did not wait. The widespread repudiation of the cryptographic ecosystem was felt.
BNB price with indicators Mobile Average 30-50-200 – Source: Santiment
The combination of the volatility index with the moving average in the last 30 and 50 days, the closings converge at 239 dollars and 240 dollars respectively.
An important piece of information is that the moving average index for the last 200 days shows that the price already closed at 282. This data represents a drop close to more than 14% compared to the price of $240 in the past. 19th of June.
BNB Price with RSI Indicator – Source: TradingView
BNB price expectations are not entirely clear; however, the RSI indicator shows that there is an oversold of the assetobviously a product of the price drop, pressured by the SEC actions against the Binance company.
In any case, the next objective to follow for the asset is to reach 243 dollars, thus it could consolidate a slow but continuous rise in the price from June 12. For it, It will be interesting to see how the actors respond to the news about the SEC settlement. that the same CEO of Binance has communicated.
In the SEC’s attempt to “protect user funds”, the freezing of the funds was requested before the court, in such a way that the exchange could not dispose of them and thus guarantee the capital of users and investors.
Given this, the Court decided to urge the parties to reach an agreement, in which Binance management employees are prohibited from accessing the private keys of the wallets, as well as cold wallets and also root access to the tools of Amazon Web Services of Binance.US.
From Binance.US, more specifically from their Twitter account, they have ensured that:
“There has never been any evidence presented by the SEC regarding the misuse of client assets. In fact, the SEC’s lawyers conceded in court earlier this week, when questioned by the judge, that they had no evidence to suggest that such a thing had occurred.”.
Similarly, the agreement reached between the company and the regulatory body generated impressions from its CEO, outlining that:
“While we maintain that the SEC’s emergency relief request was wholly unjustified, we are pleased that the disagreement over this request was resolved on mutually agreeable terms. User funds have been and always will be safe on all Binance affiliated platforms”.
Although we maintain that the SEC’s request for emergency relief was entirely unwarranted, we are pleased that the disagreement over this request was resolved on mutually acceptable terms.
User funds have been and always will be safe and secure on all Binance-affiliated…
— CZ 🔶 Binance (@cz_binance) June 17, 2023
Apparent end of controversy
Justice seems to partially smile on Binance, the agreement reached with the SEC reveals the real possibility that a company of this size can face the regulatory body, with a certain possibility of winning and keeping operations running.
In this sense, Binance US on its Twitter account said on June 17 that:
“We are pleased to inform you that the Court did not grant the SEC’s request for a TRO and asset freeze on our platform, which was clearly not justified by both the facts and the law. Instead, we were able to reach a court-ordered settlement with the SEC that allows us to continue our regular course business. There has never been any evidence presented by the SEC regarding the misuse of client assets. In fact, the SEC’s lawyers conceded in court earlier this week, when the judge asked them that they had no evidence to suggest that such a thing had occurred. The SEC’s request would have effectively shut down our business, which is consistent with the agency’s continued attempts to kill the crypto industry by any means, including making allegations that are not supported by the facts.. This fight has damaged our business and our reputation, but not our fighting spirit or our determination to defend ourselves against unjustified charges and “enforcement” tactics that do not belong in our justice system. We look forward to continuing to defend ourselves in court.”
We want to provide an update on the current battle finds itself in with the SEC. We are pleased to inform you that the Court did not grant the SEC’s request for a TRO and freeze of assets on our platform which was clearly unjustified by both the facts and…
— Binance.US 🇺🇸 (@BinanceUS) June 17, 2023
It remains to be seen how these resolutions impact the market, causing users to stop the current oversold on the BNB token and allow the price to regain strength and emerge with new prices that are further from the fall that caused this legal dispute.
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