SEC calls for a freeze on Binance assets
The SEC has made public its intention to suspend Binance.US and ensure the safety of client funds, including the return of clients' investments from overseas. On Tuesday, it was announced that the agency had filed a lawsuit seeking urgent action for a temporary injunction. The regulator also urged the judge to take action to "guarantee the safety of Binance.US clients' assets and their presence in the United States during the settlement of the current SEC-related litigation on this issue."
During a court hearing on Monday, Binance and its CEO were charged by the SEC with mismanaging client assets, defrauding investors and regulators, and violating securities regulations. Binance expressed its determination to fight for its rights. In a tweet on Tuesday, Binance.US responded to the proposal for a temporary injunction, calling it "unjustified."
According to a statement from Binance's lawyers, in 2019, the current head of the SEC sought to become an advisor to Binance. He held meetings with the management of the exchange and negotiated with CZ while he was a lecturer at the Massachusetts Institute of Technology. Gensler continued to maintain ties with CZ and, given these facts, Binance's lawyers demand that Gensler be removed from the exchange's case.
SEC sues Coinbase
On Tuesday, the SEC filed a lawsuit against Coinbase, the leading U.S. cryptocurrency exchange, alleging that it was operating as an unregistered intermediary. This lawsuit was filed just a day after a similar one was filed against Binance. The SEC claims that Coinbase's refusal to register "led to the infringement of the rights of investors." Coinbase CEO Brian Armstrong tweeted on Tuesday that the company is “proud to be able to represent the sector in court and finally understand the rules regarding cryptocurrencies.” However, he also expressed his dissatisfaction with the SEC, noting that the regulator approved the activities of the crypto site, allowing Coinbase to go public in 2021.
Atomic Wallet Hack Investigation Continues
Elliptic, a blockchain technology research firm, this week made the allegation that it was highly likely that the Atomic Wallet was hacked by North Korean-connected hackers belonging to the so-called Lazarus Group. This resulted in estimated damage of millions of dollars.
Atomic Wallet is a decentralized wallet where users are responsible for stored assets. The platform supports over 500 different coins and tokens, including Bitcoin and Ethereum, and claims to have over five million software users worldwide. Atomic Wallet, in turn, did not disclose information about the number of affected users or the possible amount of stolen funds, also remaining without comment on who could have initiated the attack.
Keith withdrew 15.2k ETH ($28M) from Binance
According to Lookonchain data, an anonymous large cryptocurrency holder transferred 15.2K ETH (equivalent to $28M) from Binance in the last few hours. The wallet where the funds were transferred was created just a month ago. In total, 39.3 thousand ETH ($72 million) were transferred from the exchange to this wallet. In addition, each withdrawal occurred shortly after the fall in the price of Ethereum. Analysts suggest that this whale is accumulating ETH ahead of the upcoming bull trend.
Ethereum fees fall to two-month lows
The Block specialists noted a decrease in the average daily payments for gas in the Ethereum network to levels indicating the achievement of the April minimum. This followed a surge in meme token trading in May. The average cost per transaction (based on a smoothed 7-day moving average) has dropped to $7.09 from a peak of over $20 last month.
A similar trend is observed in the case of the gas cost indicator, measured in Gwei - the main unit of payment in Ethereum. The median daily price dropped to 22 Gwei, while at the beginning of May the figure reached 142 Gwei.
Currencies recognized as securities fell by 20%
The past week turned out to be a test for the cryptocurrency market, and the collapse of the exchange rate was inevitable. This happened during the night hours from Friday to Saturday, when the main traditional financial markets do not work. Note that most of the major collapses of cryptocurrencies take place during this period.
Cryptocurrencies, which were recognized by the SEC as securities, became the first "victims" of this collapse. Solana, Matic, Cardano, Filecoin and Sand lost over 20% in value in a few hours. Other altcoins also lost from 10% to 27% of their value - for example, BNB fell to $234. At the same time, BTC was only down 3.5% and ETH was down a little more than 5%. In light of these developments, the fear and greed index temporarily fell below 50%, which indicates a high level of anxiety among investors and the willingness of some of them to sell their assets even at a loss.
Before Kwon released on bail in Montenegro
Do Kwon, co-founder of Terraform Labs, has been temporarily released on bail in Montenegro after successfully challenging the court decision, but his actions will be under constant surveillance until the next court hearing. It should be noted that the Montenegrin court rejected the appeal of the prosecutor's office against his release on June 2.
According to an official statement from the Podgorica Court of First Instance, the State Prosecutor's Office's appeal against the previous bail decision was dismissed. This allowed Do Kwon and Terraform Labs CFO Han Chang-jun to await the next phase of the lawsuit while under house arrest in the country.
The court reaffirmed the bail conditions set out at the May 12 hearing. Under these conditions, both must post a bail of 400,000 euros (about $436,000) each to be released from custody. Now Kwon and Chang-Jun are under strict bail conditions and cannot leave the latter's place of residence in Montenegro. Local law enforcement will keep a close eye on the couple. In case of violation of the conditions of supervision or leaving the place of residence, the security deposit will be withdrawn.
