Due to the Wall Street Journal's report that Coin An helped Russian users transfer funds overseas, BNB fell to $204.The increasingly strict legal and regulatory scrutiny of the exchange, as well as a large number of non-performing BNB guaranteed loans, have suppressed the price of the token
- Due to the Wall Street Journal's report that Coin An helped Russian users transfer funds overseas, BNB fell to $204.
- The increasingly strict legal and regulatory scrutiny of the exchange, as well as a large number of non-performing BNB guaranteed loans, have suppressed the price of the token.
The cryptocurrency BNB, closely related to cryptocurrency exchange security, has fallen to its lowest point in over a year, as news reports on new risks related to Russian sanctions have intensified the regulatory and legal pressure the company has already faced.
Earlier on Tuesday afternoon, the token fell to $204, the lowest level since the crypto market crash in June 2022. Afterwards, the company made up for some of the losses and is currently changing hands at $205, a decrease of approximately 14% from the past week.
The latest decline occurred when The Wall Street Journal reported that despite widespread international sanctions, the currency is still promoting the ability of Russian users to transfer funds abroad.
The exchange has faced extensive regulatory scrutiny worldwide, including lawsuits filed by the US Securities and Exchange Commission (SEC) for multiple federal securities law violations, such as mixing customer funds and listing unregistered securities such as BNB and BinanceUSD on the platform.
The risks surrounding Coin An are putting heavy pressure on BNB, which is the fourth largest cryptocurrency with a market value of $32 billion and provides power for the BNBChain network (formerly known as Coin An Smart Chain).
Further price declines may affect the broader cryptocurrency market, as some market observers have long claimed that Coin An may attempt to support the value of tokens by selling Bitcoin (BTC). Zhao Changpeng, the CEO of the exchange, previously denied such rumors.
With the decline of BNB this afternoon, the price of Bitcoin (BTC) has also dropped to an intraday low below $25800.
The cryptocurrency loan secured by the $130 million BNB on the decentralized financial agreement Venus is about to be liquidated, which also puts pressure on the price of the token. According to the voting results of Venus governance, BNBChain is coordinating with Venus to orderly dismantle loans to avoid "cascading liquidation" and "unnecessary damage to the market".
According to Coindesk, the BNBChain development team cleared $30 million in outstanding debt on Monday, which to some extent helped alleviate liquidation risks. ArkhamIntelligence's blockchain data shows that after partial liquidation, BNBChain received $30 million in USDT from Coin On Wallet.
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