Crypto Market Loses $150 Million in 1 Hour as IRS Investigates Binance

The cryptocurrency market has once again taken another huge dive as the United States Department of Justice investigates Binance.

Yesterday, the crypto market has experienced massive tumults repeatedly. The drubbing market trend has been on the negative line as top crypto assets, Bitcoin and Binance Coin (BNB) plummeted after the announcement of the investigation on crypto trading platform Binance.

The entire cryptocurrency market cap has shed roughly $200 billion with a whopping $150 billion lost within one hour. The cryptocurrencies that are most affected by the negative market dive are Bitcoin and Binance native coin BNB.

Bitcoin had earlier slumped to $46,000 before rising gradually to a $50,000 resistance in three hours. This was after Elon Musk announced the suspension of Bitcoin as a means for payment of its products. Binance Coin also experienced a double-digit percentage loss after the announcement of the investigation on Binance was made leading the crypto market to shed over 10 percent in the past 24 hours.

The investigation presided over by the US Department of Justice has accused the popular crypto trading company of crimes bordering on money laundering and the evasion of taxes, charges that the crypto exchange platform strongly denied.

How Binance is Responding to the Allegation

Binance has maintained that it hasn’t done anything wrong while referencing that its program on anti-money laundering has been successful. The crypto exchange company has stocked up on US regulators and past politicians to strengthen its regulatory compliance.

The prevailing reports is that, in the past, Binance encouraged its US-based users to illegally scale the law through the uses of Virtual Private Networks (VPNs)

The firm has however reacted to the allegation with a quote retweet to Bloomberg Crypto stating “We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion”.

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