The US SEC sued Binance and its CEO Changpeng Zhao (CZ) for violating the securities law. Consequently, bitcoin (BTC) dropped by over 3% as the marketwide bearish FUD rose.
Bitcoin has been tumbling since early May. With the current bearish sentiment, its price has fallen from the crucial $26,000 mark.
BTC is down by 3.8% in the past 24 hours from the $27,000 mark and trading at around $25,780 at the time of writing. However, bitcoin’s 24-hour trading volume has risen by 75% and currently stands at over $20 billion.
Glassnode data also shows that Bitcoin’s median transaction volume has risen nonetheless. The volume reached $75.17, marking a one-month high.
Following the SEC filing, Binance immediately witnessed a net outflow of over $69 million in almost an hour.
Moreover, the crypto Twitter has been showing its support for Binance since the news about the exchange emerged. According to a poll by CZ asking “who protects you more,” more than 85% of almost 100,000 have voted for Binance against the SEC.
Some users have even mocked the SEC with memes showing that the regulator didn’t do anything about the previous bankruptcies such as the FTX, Celsius, and Terra.
