Long-Dormant Whale Sells $2.3 Million Worth of BNB Amid SEC Lawsuit on Binance

By Tsunami 06/12/23 3:13 PM

In a surprising turn of events, a crypto whale has recently sold a substantial amount of Binance Coin (BNB) valued at $2.3 million. This sale comes just a week after the U.S. Securities and Exchange Commission (SEC) accused BNB and nearly 20 other tokens of being unregistered securities.

According to blockchain analytics firm Lookonchain, the whale sold 10,000 BNB at a price of $230 per token, resulting in a total of $2.3 million. The whale’s wallet still holds 15,000 BNB, equivalent to $3.5 million.

1/ A whale that has been dormant for 2 years sold 10,000 $BNB ($2.3M) at $230 today.

This whale was a #SAFEMOON whale before and made 110K $BNB ($47.5M at that time) with only 10 $BNB($2,400 at that time) on #SAFEMOON. pic.twitter.com/jxuBJBcWad

— Lookonchain (@lookonchain) June 12, 2023

It’s worth noting that this particular whale had purchased 110,000 BNB on the SafeMoon platform two years ago for $47.5 million. Over time, the whale sold a significant portion of the tokens, retaining 25,000 BNB for the past two years. Lookonchain’s tweet shed light on the whale’s previous activities, stating that the whale initially acquired 10 BNB on SafeMoon, which then transformed into 100 trillion SafeMoon tokens. Eventually, the whale sold most of the SafeMoon tokens for approximately 110,000 BNB at the peak of the price.

The awakening of this whale is taking place against the backdrop of the U.S. regulatory agency’s lawsuit against Binance, Binance US, and its founder CZ for alleged securities law violations. As a result, the price of BNB, the fourth-largest cryptocurrency by market capitalization, has dropped by over 22% in the past seven days and is currently trading around $233.

In addition to the legal troubles, investors are also facing selling pressure from approximately $220 million worth of BNB. This is due to a hacker who used BNB as collateral on the Venus Protocol lending platform during the BNB Bridge hack in October 2022. When the price of BNB falls to $219.76, the hacker’s 924,821.42 BNB will be liquidated.

To mitigate the potential damage to BNB, the BNB Chain and Venus Protocol projects have devised a plan. The BNB Chain team will act as the sole liquidator for the 924,000 BNB and will execute the liquidation in stages to prevent a sharp decline in the token’s price. However, the negative news could still impact investor sentiment and trigger a wave of selling within the community.

The SEC lawsuit against Binance and its competitor Coinbase has cast a shadow over the market and prompted an outflow of funds from the exchanges. According to cryptocurrency analytics firm Nansen, more than $2.5 billion and $112 million have been withdrawn from Binance and Binance US, respectively, in the past seven days.

The ongoing legal battle and regulatory uncertainty surrounding Binance and other tokens have created a challenging environment for investors. The market remains on edge as they await further developments and assess the potential impact on the broader cryptocurrency ecosystem.

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