Binance is allegedly selling Bitcoin to boost the price of its native cryptocurrency BNB, which has fallen by more than 30% since the start of the year. Binance faces an uphill struggle to preserve its dominating market position in the face of rising regulatory scrutiny and charges of Bitcoin dumping.
Binance Coin (BNB) has fallen below its 200-week Moving Average for the first time, sparking concerns about potential significant losses among altcoins, particularly those relying on the BEP20 and BEP2 token systems.
The situation has been exacerbated by reports of Binance allegedly dumping customers’ Bitcoin to support its BNB token. Crypto influencer WhaleChart first mentioned these allegations on social media platform X, with several Binance users later complaining that they could not withdraw their BTC due to a temporary suspension of withdrawals. While there has been no official confirmation of these reports, the crypto community remains divided on the issue.
The exchange has been under constant regulatory scrutiny, particularly since the collapse of FTX and Alameda Research last year. In March, Binance faced a lawsuit from the United States Commodity Futures Trading Commission (CFTC), alleging illegal operations and a lack of proper compliance measures. The situation worsened when the US SEC charged Binance and its CEO, Changpeng Zhao (CZ), with violating securities laws.