CFTC Files Suit Against Binance, Bitcoin Momentarily Slips Below $27k

Twitter icon  •  Published 1年前  •  Hassan Maishera

Binance momentarily dropped below the $27k level for the first time in more than a week after the US CFTC filed a lawsuit against Binance and its CEO.

TLDR;

  • Bitcoin momentarily slipped below $27k a few hours ago after losing more than 3% of its value in the last 24 hours.

  • The bearish performance comes after the CFTC filed a lawsuit against Binance and its CEO.

Bitcoin Briefly Slips Below $27k

Bitcoin, the world’s largest cryptocurrency by market cap, momentarily slipped below the $27k level on Monday, its lowest level since March 17.

The poor performance comes after the United States Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its founder Changpeng Zhao over claims that the cryptocurrency exchange knowingly offered unregistered crypto derivatives products in the US, a violation of federal law.

The lawsuit saw Bitcoin drop to $26,525, the lowest the cryptocurrency has traded in nearly two weeks. The broader cryptocurrency market has also lost more than 2% of its value, with the market cap now around $1.13 trillion.

Data obtained from Coinglass revealed that the price drop saw $39 million worth of long positions liquidated in the market on Monday. 

The CFTC pointed out that it classifies Bitcoin (BTC), ether (ETH), litecoin (LTC), tether (USDT) and Binance USD (BUSD) as commodities. The regulatory body added that Binance is offering unregistered crypto derivatives products in the United States.

BNB, the native token of the Binance ecosystem, is the worst performer amongst the top 10 cryptocurrencies by market cap. BNB is down by more than 5% in the last 24 hours and is now trading at $309 per coin.

 

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.