The price of the world’s leading cryptocurrency plummeted after news broke that Binance was sued by the US Commodity Futures Trading Commission (CFTC).
Bitcoin price started to decline last night after it was reported that Binance and CEO Changpeng Zhao are being hacked. CFTC sued for breaking the rules. This news immediately covered social networking sites, the market then immediately corrected.
Bitcoin had a very positive momentum in the past two weeks from $ 24,300 to $ 28,800 despite the US banking crisis, but the rally ended after the CFTC lawsuit against Binance became public. at one point bitcoin hit a low of $26,750 before rallying back to $27,000 at press time.
In addition to bitcoin, Binance’s coin – BNB – also corrected significantly over the past 24 hours. From $327 down to $307, down 6.3% at press time.
Most of the cryptocurrency market is trending down today. Ethereum is down 3.2% in the past 24 hours, while Solana is down 4.9% and Litecoin is down 7%. Ripple’s XRP has outperformed other cryptocurrencies but has also fallen on the Binance news, dropping slightly by 0.7%.
The drop in bitcoin sent shares of crypto companies plummeting throughout the morning. Coinbase is down about 9.6%, and MicroStrategy — which just announced that it bought $150 million in bitcoin in the past five weeks — is down 8.3%.
See also: MicroStrategy buys another 150 million USD in Bitcoin
Most bitcoin miners also traded down, including CleanSpark down 8.7%, Riot down 6.5% and Hut8 down 6.6%.
In response to the above negative news, CEO of Binance CZ “We disagree with many of the issues alleged in the CFTC complaint, which is unexpected and disappointing,” said the statement.