Binance Coin Whale Awakens After 2 Years of Dormancy, Liquidates $2.3 Million in $BNB

A major holder of Binance’s native token, BNB, has emerged after a two-year dormancy, recently selling a portion of its holdings on the market.

This strategic move has resulted in substantial profits and has caught the attention of the crypto community, indicating a noteworthy shift in the behavior of crypto whales.

As Binance, the leading cryptocurrency exchange, faces a lawsuit from the Securities and Exchange Commission (SEC), this article explores the implications of the whale’s actions and the ongoing legal battle.

After two years of remaining dormant, a significant holder of Binance’s BNB token has returned to the crypto scene. By liquidating 10,000 BNB tokens at an average price of $230, the whale earned an impressive $2.3 million.

It’s worth noting that despite the divestment, the whale still retains a substantial amount, with 15,000 tokens valued at $3.5 million.

The whale’s financial strategy traces back to two years ago when they initially purchased 10 BNB tokens at $240 each. They later traded these tokens for a staggering 100 trillion SafeMoon tokens.

Although the majority of SafeMoon tokens were eventually sold off, the whale accumulated a significant stockpile of 110,000 BNB, valued at $47.5 million at the time.

Binance’s Legal Battle with the SEC: The whale’s recent activity aligns with a pivotal moment for Binance, as the SEC filed a lawsuit against the exchange, its U.S. counterpart Binance.US, and its owner, Changpeng Zhao.

The SEC’s allegations include operating illegal exchanges, selling unregistered securities, inflating trading volumes, and misappropriating customer funds.

Binance’s Response and Defending its Platform: Binance firmly denied the SEC’s allegations and expressed disappointment in the SEC’s decision to pursue litigation instead of a negotiated settlement process.

The company remains determined to defend its platform, criticizing the SEC’s regulatory approach for lacking a nuanced understanding of the dynamic and complex nature of the technology.

The SEC’s lawsuit has had significant repercussions on Binance’s liquidity. Within a 24-hour period, investors withdrew a staggering $791.6 million from the exchange.

CCData reveals that both Binance and Binance.US experienced declines in liquidity, with the latter’s BTC-USD trading pair liquidity decreasing by 85% and the former experiencing a 65.6% decline since January.