Bitcoin and crypto-related stocks fell after the CFTC sued crypto exchange Binance on Monday. Photo Illustration by Josue Evilla – Fortune; Original photos from Getty Images
The Commodity Futures Trading Commission sent prices of crypto-related stocks and the most popular cryptocurrencies plummeting Monday after announcing it would sue Binance and its CEO, Changpeng “CZ” Zhao, in federal court.
Bitcoin and Ether, the two leading cryptocurrencies, are each down about 3% over the past 24 hours, a change from the steady rise of the past few days, which has both hit month-long highs. Cryptocurrency BNB, which powers Binance’s BNB chain, is down more than 6%.
Many crypto-related stocks were down even more.
Shares of rival crypto exchange Coinbase fell a little over 10% following the news. The company recently ran into its own regulatory troubles when the Securities and Exchange Commission issued a Wells Notice to the exchange relating to “aspects of the company’s exchange, our staking service Coinbase Earn and Coinbase Wallet following a cursory investigation.” , Coinbase said last week.
Shares of MicroStrategy, the Bitcoin “hodling” company founded by Michael Saylor, also lost more than 7% on Monday afternoon. In a tweet on Monday, Saylor said the company had repaid a $205 million loan to failed cryptobank Silvergate at a 22% discount. Saylor added that the company spent around $150 million on 6,455 more bitcoin tokens to bring its total holdings to 138,955, which is worth around $3.7 billion at current prices.
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MicroStrategy has repaid its $205 million Silvergate loan at a discount of 22%. On 3/23/23, $MSTR acquired another ~6,455 Bitcoins for ~$150M at an average of ~$23,238 per #Bitcoin and held ~138,955 BTC, which sold for ~$4.14B at an average of ~$29,817 per #Bitcoin Bitcoin were acquired. https://t.co/ALp9VLkTpt
— Michael Saylor⚡️ (@saylor) March 27, 2023
Mining company stock prices also fell. Marathon Digital Holdings lost more than 8%, while shares of Colorado-based Riot Blockchain fell about 8%. Toronto-based crypto miner Hut 8 lost 6%.
The CFTC alleged in a 74-page complaint on Monday that the company “disregarded applicable federal laws while promoting Binance’s US customer base…”. , and helped US-based clients “bypass compliance controls that Binance is said to be implementing to prevent and detect violations of US law.”
In a Monday tweet, Zhao posted a message with only the number “4,” which he previously said to ignore FUD, a popular Crypto Twitter acronym for fear, uncertainty, and doubt.
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