Crypto Whales Buy the Dip After SEC Sues Binance

After the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against leading cryptocurrency exchange Binance, cryptocurrency prices plunged amid a wave of fear, uncertainty and doubt (FUD), smart money investors have quickly started buying the dip.

According to data from popular blockchain analytics platform Lookonchain, significant movements of Circle’s stablecoin pegged to the U.S. dollar, USDC, were made shortly after news of the SEC’s filing against Binance, U.S.-based affiliate BAM Trading Services, and their founder, Changpeng Zhao broke.

This activity involved some of the largest cryptocurrency entities, often called ‘whales’ or ‘Smart Money’. These institutions, despite the prevailing market uncertainty, appear to be buying from what they perceive to be the bottom of the market.

Specifically, LookonChain detailed that popular crypto liquidity Provider and trading firm Cumberland withdraw 67.9 million USDC from Circle and deposited 67.1 million USDC into Coinbase, another major cryptocurrency exchange.  

Similarly, FalconX, a digital assets and cryptocurrency trading platform, also exhibited noteworthy behavior. The company reportedly received 37 million USDC from Circle and subsequently deposited 29.5 million USDC into Binance.

These movements indicate that despite the lawsuit and the resultant market FUD, some entities are making strategic decisions and potentially taking advantage of the lower prices in the market.

As CryptoGlobe reported, responding to the lawsuit Binance expressed disappointment in the Commission’s decision to abandon what the company saw as good-faith negotiations aimed at a settlement to resolve the regulator’s investigations.

The company strongly disagrees with the SEC’s allegations and plans to staunchly defend its platform. Binance criticized the SEC’s approach, suggesting it is unsuitable for the complex and evolving digital asset industry, and it could potentially harm America’s global financial innovation standing.

The exchange also vehemently denied any risk to user assets on its platform and its U.S. affiliate, Binance.US. The company also suggests that the SEC’s actions may be more about generating headlines than safeguarding investors.

Featured image via Pixabay.

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