15 minutes ago, there was a large transfer of BNB to Binance, causing the price of this coin to drop to $224. This puts Binance’s token in jeopardy as it’s in the midst of an intense legal battle.
🚨 63,340 #BNB (14,496,943 USD) transferred from unknown wallet to #Binancehttps://t.co/LqiBOlI1jB
— Whale Alert (@whale_alert) June 12, 2023
Not only has BNB been denounced by the SEC as an unregistered security, but it is also being directly affected by the regulator’s intense lawsuit against Binance and its chief executive officer, Changpeng Zhao (CZ). In addition, many speculated that the situation of Binance could be more tense when the US Department of Justice could investigate and prosecute criminally due to fraud allegations from the SEC.
Although Binance and CZ have constantly reassured the community that the exchange has continuously operated on the principles of legal compliance and transparency with respect to customer funds, in the face of a powerful agency like the SEC, most of the time, community psychology is still shaken.
According to DefiLlama estimates, this loan will be liquidated when BNB reaches a price of about $219.32, equivalent to $200 million of BNB sold on the market. At the current price, it is only a few steps away from reaching the liquidation threshold.
Once 200 million USD of BNB is released to the market, it will push the token price to dump even deeper, easily leading to a chain effect and causing panic in the whole community.
24h BNB price chart. Source: CoinMaketCap
Over the past 7 days, Binance multi-chain asset net outflow (excluding Bitcoin) was $2.376 billion, Binance US net outflow was $124 million, Coinbase net outflow was $1,787 billion, and inflow Coinbase Custody’s net outflow was $739 million. This further proves that the power of the legal authorities is a fear that pervades the entire market.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.