Crypto stocks extend losses on US SEC's lawsuit against Binance, CEO Zhao

Silvergate Capital

05/06/2023 17:06

(Updates)
    ** Shares of cryptocurrency and blockchain-related companies
deepen losses as U.S. Securities and Exchange Commission sues
Binance and its founder Changpeng Zhao on alleged violations of
securities laws 
    ** The SEC's complaint also alleged Binance and Zhao
secretly control customers' assets, allowing them to co-mingle
and divert customer funds
    ** Zhao said on Twitter the crypto exchange has not seen the
complaint and its team is "standing by, ensuring systems are
stable, including withdrawals, and deposits" 
    ** Bitcoin  BTC=BTSP , the world's biggest cryptocurrency,
moved lower on the news - it was last down 2.9%, while Binance's
cryptocurrency BNB fell 7.3%
    ** Rival crypto exchange Coinbase Global  COIN.O  falls
~9.6%, while Blockchain farm operator Bitfarms Ltd  BITF.O  down
4.7%
    ** Crypto miners: Riot Platforms Inc  RIOT.O  Marathon
Digital  MARA.O , Hut 8 Mining  HUT.O  and Bit Digital  BTBT.O 
down between 3.7% and 8.3%
    ** Shares of software firm and BTC buyer MicroStrategy
 MSTR.O  decline 7% 
    ** BTC mining machine makers Ebang International  EBON.O 
and Canaan Inc  CAN.O  down 3.4% and 4.7%, respectively  
    ** Binance did not immediately respond to a request for
comment on the charges
    ** In March, Binance and Zhao were also sued by the U.S.
CFTC for operating what the regulator alleged was an "illegal"
exchange and a "sham" compliance program 


 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com))