Market plunge due to SEC lawsuit against Binance leads to $320M losses in crypto trader liquidations.

Cryptocurrency traders lost around $320 million in liquidations during the last 24 hours, according to data from CoinGlass. The losses occurred as the prices of cryptocurrencies fell on Monday after the Securities and Exchange Commission (SEC) filed a lawsuit against Binance, a major cryptocurrency exchange, for violating securities laws. Of the total losses, $289 million was from long positions, which are bets on rising prices, marking the highest level of long liquidations in at least three months, as per Coinglass.

The SEC lawsuit alleged that Binance and its CEO Changpeng “CZ” Zhao offered unregistered securities, mixed deposits from different users, and inflated trading volumes. Several tokens, including Binance’s BNB, solana (SOL), and cardano (ADA), were cited in the lawsuit as unregistered securities and experienced a decline of up to 10% during the day. Bitcoin (BTC), the largest cryptocurrency by market capitalization, fell below $26,000 for the first time since mid-March, according to the CoinDesk Bitcoin Price Index (XBX).

The high amount of liquidations suggests that the sudden drop in prices came as a surprise to most investors. Almost 119,000 crypto traders were liquidated during the 24 hours, according to Coinglass. BTC traders suffered the most significant losses, at almost $119 million. Ether (ETH) investors lost $41 million as the token’s price dropped below $1,800. Binance traders experienced $105 million of losses, the highest among all the exchanges, followed by $88 million of losses on OKX and $43 million on ByBit, according to CoinGlass.

Edited by James Rubin.

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