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Bitcoin drops after CFTC sues crypto exchange Binance for allegedly breaking trading rules



A worsening macroeconomic climate and the collapse of industry giants like FTX and Terra have weighed on bitcoin’s price this year.

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Cryptocurrencies dropped on Monday morning after the CFTC sued Binance, the biggest crypto exchange in the world, for allegedly violating trading rules.

The price of bitcoin slid 3.5% to $26,883.11, according to Coin Metrics. Ether fell 3.3% to $1,708.78.

In a court filing, the CFTC, or the Commodity Futures and Trading Commission, said Binance violated eight provisions of a commodities trading law “designed to prevent and detect money laundering and terrorism financing.” The lawsuit, which was filed Monday in a federal court in Chicago, has the potential to upend the exchange’s operations.


“Many knew Binance had a bullseye on its back, but this is still unnerving some crypto traders,” said Ed Moya, an analyst at Oanda. “Binance’s success is needed to ensure a good part of the cryptoverse can grow.”

The news is the latest chapter in this year’s regulatory crackdown on crypto businesses, which has been a significant price catalyst for bitcoin and helped it diverge from its previously high correlation with stocks.

Bitcoin is still on track to cap a winning month. It’s advanced 16% in March, while ether has gained 6%.

—CNBC’s Rohan Goswami contributed reporting

Source: CNBC


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