Crypto traders suffer $320 million in liquidations losses as BTC, ETH, and BNB prices fall amid Binance SEC lawsuit

Data from CoinGlass showed that cryptocurrency traders suffered losses of around $320 million in liquidations over the past 24 hours as crypto prices plummeted Monday after the Securities and Exchange Commission (SEC) fired stock exchange giant Binance for alleged violations of securities laws had sued.

About $289 million in long positions — traders who had bet on rising prices — were wiped out during the day, marking the highest number of long liquidations in at least three months, according to Coinglass.

Crypto markets plummeted on Monday after the SEC lawsuit accused Binance, the world’s largest crypto exchange by trading volume, and its CEO Changpeng “CZ” Zhao of offering unregistered securities, commingling user deposits and boosting trading volumes.

Tokens named in the lawsuit as unregistered securities — including Binance’s BNB, Solana (SOL), Cardano (ADA) — led the drop, falling as much as 10% on the day. Bitcoin (BTC), the largest cryptocurrency by market cap, fell below $26,000 for the first time since mid-March, according to the CoinDesk Bitcoin Price Index (XBX).

The large number of liquidations suggests that the sudden price drop caught most investors by surprise. In total, almost 119,000 crypto traders were liquidated in 24 hours, according to Coinglass.

BTC traders posted most of the losses, nearly $119 million. Ether (ETH) investors suffered $41 million in losses as the token’s price fell below $1,800. About $6.5 million in BNB trading positions were wiped out as the token fell sharply.

According to CoinGlass, Binance traders suffered losses of $105 million, the highest of any exchange, followed by $88 million in losses on OKX and $43 million on ByBit.

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