Events Unfold: Binance and U.S. Federal Agencies Impact Crypto Market
In the last 24 hours, significant developments involving crypto exchange Binance and several U.S. federal agencies, including the Commodity Futures Trading Commission (CFTC) and the Department of Justice, have resulted in a loss of over $200 million for crypto traders holding positions on the market.
Market Impact and Statistics
According to CryptoSlate’s data, the total market cap of digital assets declined by 2.04% to $1.38 trillion amid these developments.
Over $200M in the Last 24 Hours
The crypto market witnessed a significant liquidation of $226.88 million in the past 24 hours, affecting nearly 93,000 traders.
- Data from Coinglass revealed that long traders lost $175.55 million.
- Bitcoin and Ethereum accounted for $69.02 million of these losses.
- Short traders experienced $51.31 million in liquidations, with over 50% of these losses attributed to the top two digital assets.
- Traders holding positions in Solana lost more than $10 million, while BNB positions incurred over $6 million in losses.
- Other assets such as Dogecoin, Chainlink, XRP, and Litecoin experienced less than $3 million in liquidations each.
Across exchanges, the majority of liquidations occurred on Binance, OKX, and ByBit, accounting for nearly 90% of the overall liquidations, with 78% being long positions. Other exchanges like Huobi, Deribit, and Bitmex also recorded a sizable amount of the total liquidations.
The most significant liquidation occurred on Bybit– BTCUSD valued at $2.35 million.
Binance’s Impact on the Market
Crypto analysts attribute the market drawdown to Binance’s more than $4 billion settlement with U.S. authorities and the subsequent resignation of its founder, Changpeng ‘CZ’ Zhao, as CEO after pleading guilty to money laundering charges.
On Nov. 21, several U.S. federal agencies, including the DOJ and CFTC, detailed how Binance violated multiple finance-related laws. These violations stemmed from the platform’s failure to prevent transactions involving sanctioned users and individuals in restricted regions.
In response, Binance pled guilty to the charges and issued a statement acknowledging its shortcomings. The firm agreed to pay over $4 billion in fines, retain an appointed monitor for three years, and commit to enhancing compliance measures. Additionally, it appointed Richard Teng, its former Global Head of Regional Markets, as the new CEO.
BSCN is aiming to become the leading media coverage platform around the Binance Smart Chain Ecosystem. With a strong focus towards Content Quality, Decentralized platforms, Hot topics in the market, Informative and education sources and guidance in how to be more aware around unreliable crypto projects.
