👮SEC Swoops: DeFi Week of June 4

Happy weekend Defiers!

It was a dramatic week for web3, with the U.S. Securities and Exchange Commission filing a lawsuit against Binance, the world’s largest centralized exchange, on Monday. The news drove a sell-off across the crypto markets, with BTC and ETH down 5% in 24 hours and BNB down 9%.

The SEC then took aim at Coinbase by suing the top U.S.-based exchange for allegedly violating the 1934 Securities Act. Coinbase responded that it will gladly fight the complaint, noting that the SEC allowed the firm to go public in 2021 after reviewing its business operations. Traders withdrew billions worth of crypto from both platforms in response to the news, with withdrawals slowing as the week progressed.