Crypto traders have lost about $320 million in the last 24 hours, according to CoinGlass data. The U.S. Securities and Exchange Commission (SEC) sued cryptocurrency exchange Binance on the 5th for violating federal securities laws, causing cryptocurrency prices to plummet.
About $289 million in long positions have been liquidated, the largest amount in at least three months, according to Coinglass.
Binance, the world’s largest cryptocurrency exchange by trading volume, and its CEO Changpong Zhao were sued by the SEC for allegedly providing unregistered securities, mixing up user funds, and inflating trading volumes, and the cryptocurrency market closed on the 5th. plummeted.
Crypto assets named as unregistered securities in the complaint, including Binance Coin (BNB), Solana (SOL) and Cardano (SOL), have fallen sharply, with some dropping as much as 10% in a single day. Bitcoin (BTC) has broken below $26,000 for the first time since mid-March, according to the CoinDesk Bitcoin Price Index (XBX).
The massive liquidation shows that the market crash was unexpected for most investors. About 119,000 crypto traders faced liquidation in 24 hours, according to Coinglass.
Bitcoin traders dominated the liquidation, around $119 million. Ethereum (ETH) traders lost about $41 million. Ethereum briefly dipped below $1,800 (around $1,810 at time of writing). About $6.5 million of positions on Binance Coin have been liquidated.
By exchange, according to CoinGlass, Binance traders had the highest loss of $105 million. OKX followed with a loss of $88 million and ByBit with a loss of $43 million.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Original: Crypto Traders Suffer $320M Losses in Liquidations as SEC Lawsuit Against Binance Spurs Market Plunge