Crypto markets held Monday’s losses on Tuesday, a day after the U.S. Securities and Exchange Commission (SEC) sued crypto exchange Binance and its founder Changpeng CZ Zhao on allegations of violating federal securities laws. Decentraland’s MANA token has lost the most ground, down 11% over the past 24 hours, while Play-to-earn game Axie Infinity’s token AXS and Binance’s BNB token have both fallen 10% and 7%, respectively. According to data from Nansen.ai, outflows from Binance across all protocols reached $719 million over the last 24 hours, with net outflows hitting $230 million during U.S. trading hours.
Meanwhile, U.S. Bankruptcy Court Judge Sean Lane extended a mediation period between crypto lender Genesis and its creditors at a Monday hearing. Judge Lane appointed a mediator to steer talks between the parties after discussions broke down earlier this year. There’s lots of different kinds of conversations that have to happen in connection with [bankruptcies], Lane said.
The SEC’s lawsuit against Binance could be a preview of what may be coming down the road for rival crypto exchange Coinbase (COIN), according to Berenberg analyst Mark Palmer. We observe that several of the details of the lawsuit that the commission filed against Binance echo those it previously filed against crypto exchanges Bittrex and Kraken, and we believe these cases in aggregate represent a preview of the action that is likely to be filed against COIN, Palmer said.