Topic: Binance crisis - how will it affect the crypto market? - page 7. (Read 1310 times)

I also think that there must be some influence of the banking lobby behind this lawsuit, granted, CZ and Binance probably made mistakes and they are now being used against them in court.

But the fact is that Binance is not only a cryptocurrency exchange, it is a bank and offers basically full banking in crypto currency and stable coins to their clients: saving accounts, collateralized loans, instant payment systems, P2P markets... The banks of USA may feel threatened by Binance because it's rapid growth, specially outside the USA and among those who do not like the fees and problems of traditional banking.

For example, have you taken a look at the Paypal fees? Binance Pay does not have any. One of the biggest reasons it is becoming popular here in my country as a payment method. 

Binance is very active and the banks are threatened for this, so probably they influence SEC to file a case against Binance and might saw the weakness of Binance. This can affect the whole Binance but i think this is just temporary and Binance will prevail. Many investors knows what the real value of Binance and its contribution in cryptomarket, many will continue to support Binance even if there’s a pending case like this.

FUD and FOMOs.
Remember how hard the market fell last time with FTX issue? Even if cases are not totally the same, people would more likely associate one another because it involves funds on the exchanger which is why it won't be surprising to see a market crash but I hope it won't be too hard that the market will have a hard time to recover. Supposedly, the market should not crash because of what happened simply because it is still an allegation. It is just people tend to react easily which causes to do so.I disagree. Scope of accessibility of an exchanger has nothing to do with issues concerning funds, as accused to Binance and the other exchanger. In fact, it is even the reason why it became the largerst exchanger, because being more accessible makes the volume larger basically.

The market is not stable and the price of Bitcoin fell immediately the news carries the allegations against the world biggest exchange. I still don't know why the American government are very strict with there rules which still makes things very hard for there users especially people that are using the exchange. I am very certain that Binance is going to survive this attack by the sec against the largest crypto exchange and other exchange like Coinbase. There had been fud against Binance coin before and now we are seeing the same things happening again.

On the other hand, aggressive marketing is a normal business practice, which any self-respecting company should use. The global battle was bound to happen sooner or later - and it is good that there is such a strong exchange as Binance. in my opinion, the SEC made a mistake in choosing a competitor.

One thing to underline is that the SEC only sues Binance.US. and not to Binance globally. Because they are just security guards for Americans using Binance.us. And although there was a spike in withdrawals when CZ and Binance.US were sued. but this in reality has little effect on the level of user trust in the binance platform. even the number of withdrawals globally is not that worrying and SAFU is actually owned by Binance as CZ disclosed.

I don't think the lawsuit against CZ and Binance.US has anything specifically to do with competition issues with China or anything like that. The SEC just researched and found a little loophole there and sued him. like he did with Ripple. But if CZ wants and doesn't care about US users then he can just stop operating his platform in that country. but it seems that CZ still wants to survive and pay attention to the comfort of the users there. because there are quite a lot of users from the US.

and currently the final decision regarding sec vx xrp in court has almost reached the end of the judge's decision. and I think because of this the SEC seems to be in a rush to put pressure on the crypto-related industry. because if the problem with XRP has been resolved. and if xrp turns out to win in a long running case. then the assets that are valued by the sec as securities may not be sued by the sec. let alone a project that has the same concept as xrp.

"Negative correspondence between two Binance employees was tweeted out
Today, crypto analyst and Cinneamhain Ventures partner Adam Cochran posted compromising correspondence between former Binance Chief Compliance Officer Samuel Lim and previous Head of Business Development Alvin. Evidence in the SEC's case against Binance in the form of correspondence from an internal chat room, first between Sam Lim (former head of compliance at Binance) and Alvin (former head of business development).   Their conversation concerns stock bonuses, where Sam also talks about the risks of owning BNB. The first screenshot of the conversation, which Cochran posted in the 15-part thread, had Alvin saying that BNB was heading towards "zero", followed by Lim's infamous quote, which quickly spread in the cryptocurrency community: We work like a fucking unlicensed securities exchange in the US, bro. "

https://happycoin.club/v-tvitter-vylozhili-negativnuyu-perepisku-dvuh-sotrudnikov-binance/

The parent company of the largest cryptocurrency exchange by trading volume, Binance, is suspected of violating sanctions against Russia and The agency intends to find out whether Binance officials or companies allowed Russians to circumvent US sanctions and transfer money through its trading platform. At the time of writing, neither the exchange nor its executives were reportedly accused of wrongdoing.financial institutions immediately allow the U.S. government to have jurisdiction over those transactions. (NY has many banks that facilitate global transactions, so it usually falls in their jurisdiction on the federal level).

In my opinion, the factor that caused Binance to experience a crisis was because it was too ambitious and expanded in many countries. In my country, the Binance group also opened exchanges but it seems that there are not many users. They advertise in many media such as television, newspapers, online media and many more. Of course this costs money. marketing increases.

IDK and I do not think so, Because first of all Binance and Coinbase, none of them is chinese company so why will USA put pressure on these companies if they have no direct link to China. As stated in the following article:
These hugely successful companies came from China. But you’d never know That,I do not think Binance will lead crypto to disaster or any severe kind of problem because we read much news about how much money was outflow from Binance and Coinbase when the news breakout but we should also think where that money is going. That money is going here:Source

But i do agree that, once these exchanges will be banned partially or fully, how citizens are going to buy BTC, But wait, that factor can also not effect the market, because there are many BTC ATMs in USA, as these exchanges are only going to halt there functionalities in the USA only so i do no think we should worry about it.

Today the news came out one by one:

- U.S. District Court summonses the CEO of Binance CZ. The United States District Court in Washington, D.C., issued a subpoena to Binance CEO Changpeng Zhao.

This came just two days after the SEC sued the exchange for violating securities laws. The subpoena stated that criminal proceedings were pending against the CEO.

- Binance.US will delist about 100 trading pairs and suspend over-the-counter (OTC) trading on June 8
Binance.US will remove selected pairs for extended trading on June 8, 2023 at 9:00 a.m. Pacific Time / 12:00 p.m. EST. Earlier, the SEC demanded that the U.S. branch of the Binance exchange return fiat funds to customers.
Thus, regulators and the courts decided to make sure that Binance exchange will be held accountable for violating the law from their perspective. The court proceedings may last for a long time and it is unknown how the litigation between the largest cryptocurrency exchange and U.S. regulators will end.

https://cryptonews.net/ru/news/legal/21113589/


- Will Binance face secondary sanctions for serving Russian citizens? In early May, Bloomberg reported on an investigation by the U.S. Department of Justice's National Security Division into Binance Holdings Ltd. The parent company of the largest cryptocurrency exchange by trading volume, Binance, is suspected of violating sanctions against Russia.

The agency intends to find out whether Binance officials or companies allowed Russians to circumvent US sanctions and transfer money through its trading platform. At the time of writing, neither the exchange nor its executives were reportedly accused of wrongdoing.

At the same time, the U.S. Internal Revenue Service, together with analytical firm Chainalysis and Ukrainian law enforcers have been monitoring cryptocurrency transactions of Russian citizens.

https://forklog.com/exclusive/grozyat-li-binance-vtorichnye-sanktsii-za-obsluzhivanie-grazhdan-rossii

But only that, Binance could actually be a con artist here because it's a long time player in this kind of issues, CZ himself is not too worried because he had already known the way out, but what happens if the government eventually seize their licence of operations and banned them, aren't there going to be a massive lose of asset from them, are they not going to get liquidated, but the truth will always emerge one day about not your keys not your coins while the remaining aspect of the cryptocurrency network keeps moving.

i think you are right there
Binance is an artist on its own rights.

Looks grim. I'm not so concerned about layoffs induced by economic conditions because those jobs are recoverable. Though, if they're reducing staff because of regulators targeting them, that's a different matter. U.S federal agencies have tentacles all over the world and it becomes outrageous how single agencies in one country can collapse entire companies (I suppose that's the SEC's goal here).

Even if companies are in foreign jurisdictions, any financial transactions that are facilitated through U.S. financial institutions immediately allow the U.S. government to have jurisdiction over those transactions. (NY has many banks that facilitate global transactions, so it usually falls in their jurisdiction on the federal level). The solution to this would be to cut out the U.S. market if Binance was concerned of being targeted, but then what happens to a business when they reject a lucrative market?


IMO, the U.S. is doing what they can to squash all crypto markets in preparation for their launch of CBDC's within the next 4-5 years. I knew regulation was coming, just didn't think it would be in the form of frivolous lawsuits. By the way, these lawsuits get expensive and take years to reach fruition. Perhaps the SEC might have a weak case against Binance, but the negative publicity will have its intended effect. We won't know unfortunately, all this stuff is sealed from public eye.

some people actually take the momentum from this, they say if there is any rumor in the crypto world right now it is a way for us to buy without having to be difficult to predict through the charts, but something like this cannot be done for people who do not understand when to enter and exit in profit. because this is momentum, it could be that when we hold back and binance really collapses, it will have a dangerous impact on our assets. well, the safest thing is to save fiat.

If you review the history of Binance, it has become an expert in addition to the business that Exchange manages, it is to respond to lawsuits, it has them in most of the countries where it works as an exchange, nothing new here, and using the adjective crisis is exaggerated.

More "propaganda" for the exchange, nothing is going to happen at least not in the short term, but it is a sign for you to understand what your financial relationship with that exchange should be.

Which takes the gist of what happened 2 days ago that the state of Binance could create opportunities for other cryptocurrencies to attract users and divide the market. Competitors can position themselves as more compliant, secure, or transparent alternatives, potentially changing market dynamics and  I think that the result of the lawsuit and the effect it will have on the crypto market is uncertain.

It is believed that Binance, Coinbase and Tether are the three basic pillars of the modern crypto industry. 

They can be compared with three whales, on which (according to the ideas of ancient people) the planet Earth lay.  We are now seeing a regulatory attack on at least two of these three whales (on Binance and Coinbase). 

All this can have long-term negative consequences for the entire crypto industry.  The price of Bitcoin is not falling yet.  It is possible that the capitalization of other tokens and coins that the SEC wants to recognize as securities is now being poured into the capitalization of Bitcoin. 

However, the collapse of Binance will be a painful blow to the entire cryptocurrency market.

On a broader perspective it's bad. The distribution of the supply of almost all cryptocurrencies is more concentrated on centralized exchanges, in general, the utilization of crypto fluctuations is still the main reason for users. Which means, people haven't really been tempted to use crypto in real life despite its brilliant utilities.

The SEC has filed a petition to freeze the assets of Binance US. The situation around the cryptocurrency exchange Binance continues to heat up, with the Securities and Exchange Commission (SEC) asking a court for permission to freeze assets, including cryptocurrencies, associated with the US branch of the Binance US platform a few hours ago.

The petition seeks an asset freeze on assets associated with BAM Management US Holdings and BAM Trading Services, the holding and operating companies of Binance US, as well as relief for customer fiat and cryptocurrency assets held on the platform. The order covers dozens of accounts held at Axos Bank, defunct Silvergate Bank, Prime Trust and other institutions.

https://www.courtlistener.com/docket/67474542/4/securities-and-exchange-commission-v-binance-holdings-limited/