Ahead of the significant SEC crackdown on Binance, it appears that some traders executed well-timed sell orders for BNB tokens, capitalizing on the situation. Data from TradingView reveals that around 125,000 BNB, equivalent to $37 million, were sold in a surge of aggregated sell orders on the BNB/USDT order book on Binance.
These sell orders occurred at 11:45 p.m. UTC on June 4 and 1:45 a.m. UTC on June 5, just before the U.S. Securities and Exchange Commission (SEC) announced its lawsuit against Binance.
Furthermore, Coinalyze data indicates that BNB’s open interest, which represents the total number of outstanding derivative contracts held by investors, increased by approximately $30 million in the first nine hours of June 5.
This rise in open interest occurred before the news of the SEC’s allegations, revealed at 11:15 a.m., which accused Binance of commingling customer funds and operating an unregistered securities exchange. An increase in open interest suggests that new traders are entering the market and initiating new positions rather than closing existing ones.
Following the SEC’s crackdown, the price of BNB, which the SEC considers a security, experienced a drop of over 9%, falling from $300 to $272 within an hour.
Traders who speculated that the price of BNB would decrease before 11:15 a.m. on June 5 profited significantly from the subsequent price action following the SEC’s lawsuit against Binance, the largest cryptocurrency exchange by trading volume.
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