After the SEC’s accusations against Binance and its executives, the total value of the crypto money market decreased by $ 53 billion. New reports suggest that some big investors, like FalconX and FBG Capital, are using the drop as a buying opportunity, meanwhile.
Binance lawsuit offers buying opportunity for smart money
cryptocoin.com On June 5, the SEC sued Binance and its CEO, CZ, for violating federal securities laws. After the news that emerged yesterday evening, the BTC price saw $ 25,500.
Market-wide sales aside, reports examining institutional wallets indicate that a few major investors are transferring funds specifically to Binance during the decline. In one of these, FalconX received 37 million USDC from Circle, of which 29.5 million was invested in Binance. Lookonchain, owner of the data, says these investors “seem to be buying at the bottom.”
1/ Affected by the #SEC suing #Binance, there is a lot of #FUD in the market.
However, we have noticed that some institutions, whales, and SmartMoney seem to be buying from the bottom.
👇— Lookonchain (@lookonchain) June 6, 2023
In the second transaction, blockchain investment firm FBG Capital deposited 44 million USDT in Binance after SEC pressure. In another transaction, Lookonchain spotted a crypto whale pulling 703,871 USDC and over 2.5 million USDT from Aave. This whale then bought 3.35 million ETH at an average price of $1,810.
SEC shocks investors with second lawsuit
Altcoin prices have dropped significantly since the SEC sued Binance on Monday. The Coinbase lawsuit that emerged today has dragged prices to new lows.
Bitcoin is trading at $25,900, down over 2% in the last 24 hours, with ETH falling 1.5% to $1,830 over the same period. Binance’s BNB and Solana (SOL) took the biggest hits, falling over 7%. At the time of writing, the altcoins that lost the most in the last 24 hours are as follows:
Meanwhile, major crypto influencers have come to support Binance amid the SEC lawsuit. BitMEX co-founder Arthur Hayes said in a tweet that the market is bearish on some “Binance FUD” and voiced a positive scenario for the future. CZ previously asked his followers, “Who better protects investors? Binance or SEC?” he tweeted.
Who will win, Binance or SEC?
Former SEC Enforcement Officer John Reed Stark said the case was a “boxing fight.” Stark notes that the SEC trial team is top notch. But he adds that Binance has hired some of the best SEC practice defense attorneys to challenge the SEC.
The SEC/Binance Case is Ali-Frazier Redux.
The SEC trial team battling Binance is top-notch but Binance has hired some of the best SEC enforcement defense attorneys on the planet.
The SEC is represented in-house by Matthew Scarlato, (former US DOJ civil prosecutor), Jennifer…
— John Reed Stark (@JohnReedStark) June 5, 2023
Meanwhile, Binance is gearing up for SEC action. He hired some attorneys, some of whom were former SEC officials. The crypto exchange is represented by Richard Grime, former SEC Executive Vice President. CZ’s dedicated advocates include Douglas Yatter, Benjamin Naftalis, William R. Baker and Eric Volkman. Baker is also a former U.S. SEC Deputy Executive Director.
