While this happened, Binance also lost multiple of its top executives, further fueling the FUD around the exchange. With the FUD that seems to be developing around the largest exchange, how have key metrics fared? Also, has there been any impact on BNB?For starters, the SEC has taken legal action against Binance and its CEO, Changpeng Zhao, accusing them of mishandling billions of dollars and jeopardizing investors’ assets.
The SEC also alleges that Zhao and Binance exercise control of the platforms’ customers’ assets, permitting them to commingle customer assets or divert customer assets as they please, including to an entity Zhao owned and controlled called Sigma Chain.Following the lawsuit, fear among investors spiked, which was legitimate considering the previous collapse of big exchanges like FTX, which caused a market crash. This time, though the market did not crash, it caused some harm.
The episode caused a correction in BTC’s price, which made investors anxious as they feared a further drop in its price. However, that was not the case, as the market was quick to recover. But a notable fact is that during that period, investors lost confidence in Binance as the exchange witnessed massive outflows.Investors and the entire crypto community as a whole were still concerned about the Binance situation, as things were not cooling off.
This happened just prior to BTC dropping below the $30,000 mark. This was also fueled by the resignation of multiple top executives at Binance.