In the midst of an ongoing regulatory crackdown on the cryptocurrency industry, a prominent BNB whale has decided to cash out a portion of their holdings after two years of dormancy. According to on-chain analyst account Lookonchain, the whale sold off 10,000 BNB coins at $230 each, pocketing a significant $2.3 million. Despite the sale, the whale still retains 15,000 coins, valued at roughly $3.5 million.
The whale’s accumulation of Binance’s native coin, BNB, began two years ago when they acquired a substantial amount of the cryptocurrency for a relatively low price. At that time, they had made an impressive $47.5 million with just 10 BNB by trading them for SafeMoon tokens.
By transferring 10 BNB to SafeMoon, they received a staggering 100 trillion SafeMoon tokens, which were predominantly sold for 110,000 BNB. Out of this total, they held onto 25,000 coins until now.
This recent sale by the whale comes at a time when BNB has faced significant challenges. Last week, the United States Securities and Exchange Commission (SEC) filed a lawsuit against Binance, Binance.US, and their owner, Changpeng ‘CZ’ Zhao, accusing them of violating securities laws.
In the wake of this lawsuit, BNB, the fourth-largest cryptocurrency by market capitalization, has experienced a sharp decline of over 22% in the past seven days and is currently trading at around $233.
The SEC’s legal actions against Binance and its competitor, Coinbase, have triggered substantial outflows and downward pressure on crypto prices. According to crypto analytics provider Nansen, Binance has witnessed net outflows totaling over $2.5 billion in the past week, with Binance.US also experiencing an outflow of over $112 million. Furthermore, the SEC lawsuit has led to a 78% decline in market depth for Binance.US.
Binance has responded to the SEC charges by stating its intention to vigorously defend itself. The company remains committed to navigating the regulatory landscape and ensuring compliance with securities laws. The crypto community will be closely watching how Binance addresses the allegations and how the market continues to react to the ongoing regulatory scrutiny.
As the crypto industry grapples with increased regulatory oversight, investors and market participants must navigate a landscape that is rapidly evolving. The outcome of these legal battles and regulatory decisions will undoubtedly shape the future of cryptocurrencies and their associated platforms.
