Journalist
Posted:
- SEC continued its search for fraud at Binance.
- Global exchange volumes were unchanged; however, the BNB token took a hit.
American regulators were on a roll last year. With multiple legal battles in the crypto sector, it seems that these bodies are going all out in their investigation into the crypto sector.
The SEC won’t stop
The SEC has intensified its search for possible fraud at Binance US following DOJ charges against Binance and its ex-CEO Changpeng Zhao.
The ongoing SEC lawsuit alleges that customer funds were compromised. In the wake of Binance’s DOJ settlement, the SEC is looking to strengthen its case and seek parallels with the FTX investigation.
Specifically, the SEC is examining evidence showing that Binance US provided CZ with a backdoor asset control scheme, which echoes concerns raised about Sam Bankman-Fried at FTX.
Although the SEC’s lawsuit hinted at possible fraud, concrete evidence remains elusive. The recent DOJ investigation into Binance could catalyze the SEC’s efforts.
Binance settled with the US government and agreed to pay $4.3 billion, and CZ also stepped down as CEO.
Current state of affairs
The SEC’s intensive search for possible fraud at Binance US has a significant negative impact. If the SEC discovers evidence supporting the allegations, it could lead to legal ramifications and financial penalties for Binance.
The constant surveillance can erode trust among users and investors. It could potentially result in a decline in the platform’s user base.
Furthermore, negative publicity and legal challenges could hamper Binance’s reputation. It could also impact the bigger picture regulatory environment.
At the time of writing, volumes on the US exchange Binance had fallen significantly and failed to recover. However, volumes on the Binance exchange worldwide were not affected. 
Source: Het Blok
BNB holders are affected by this
However, the BNB token, which is closely tied to Binance, was hit hard. At the time of writing, BNB was trading at $227.59.
The price of the token has fallen significantly in recent days. This resulted in the BNB token exceeding its previous high lows. If this momentum continues, a bearish trend may emerge in the future.
Realistic or not, here is BNB’s market cap in BTC terms
The chatter around Binance caused BNB’s social volume to rise. However, weighted sentiment around the token plummeted.
This meant that many people lost confidence in the BNB token. It remains to be seen whether the BNB token will be able to get back on its feet in the future.
Source: Santiment
