Bitcoin (BTC/USD) Slides as the SEC Now Charges Coinbase After Indicting Binance on Monday

Bitcoin (BTC) Prices, Charts, and Analysis:

• Coinbase shares slump further after the SEC charges the crypto exchange.
• SEC charges Binance and company CEO CZ.

Coinbase shares are currently 18% lower in pre-market trade, following a 9%+ drop on Monday, after the SEC formally charged the company for operating as an unregistered securities exchange, broker, and clearing agency.

‘According to the SEC’s complaint, since at least 2019, Coinbase has made billions of dollars unlawfully facilitating the buying and selling of crypto asset securities. The SEC alleges that Coinbase intertwines the traditional services of an exchange, broker, and clearing agency without having registered any of those functions with the Commission as required by law.’

SEC.gov | SEC Charges Coinbase for Operating as an Unregistered Securities Exchange, Broker, and Clearing Agency

Coinbase (COIN) Daily Price Chart – June 6, 2023

The SEC yesterday filed 13 charges against the world’s largest cryptocurrency exchange, Binance, and its CEO Changpeng Zhao, including operating illegally in the US and commingling customers’ assets. In addition,

‘Through thirteen charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law,” said SEC Chair Gary Gensler. “As alleged, Zhao and Binance misled investors about their risk controls and corrupted trading volumes while actively concealing who was operating the platform, the manipulative trading of its affiliated market maker, and even where and with whom investor funds and crypto assets were custodied. They attempted to evade U.S. securities laws by announcing sham controls that they disregarded behind the scenes so that they could keep high-value U.S. customers on their platforms.’

SEC.gov | SEC Files 13 Charges Against Binance Entities and Founder Changpeng Zhao

Binance Coin (BNB) Daily Price Chart – June 6, 2023

Bitcoin (BTC/USD) fell through recent support yesterday on the back of the Binance news and currently trades around $25.5k. A previous level of resistance turned support around $25.2k is close and may not hold the current wave of negative sentiment hitting the cryptocurrency space.

Bitcoin (BTC/USD) Daily Price Chart – June 6, 2023

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