The latest SEC enforcement action has resulted in $300 million in liquidations. 

More than $50 billion has left the crypto asset space since the SEC fired its latest salvo at the world’s largest exchange, Binance.

If American regulators were aiming to crash crypto markets and generate losses by instilling fear in investors, they are achieving their goal.

Cryptocurrency markets have shed $55 billion or around 5% since the Securities and Exchange Commission sued Binance for violating securities laws.

As a result, total capitalization has dropped to $1.13 trillion, its lowest level since mid-March.

Who protects you more?

— CZ 🔶 BNB (@cz_binance) June 6, 2023

Crypto Long Positions Liquidate

There have been over $270 million in long positions liquidated over the past 12 hours or so. Additionally, $24.8 million short positions were liquidated in the crypto market rout.

In the past 24 hours, a total of 116,630 traders were wrecked, with the total liquidations coming in at almost $300 million. Binance has only seen $2.89 million in liquidations, but it tops the list for centralized exchange derivatives liquidations.

According to Former BitMEX CEO Arthur Hayes Risk markets were on edge because of the TGA (U.S. Treasury General Account) refill, not the Binance FUD.

The market is down on some binance FUD. But regardless of the catalyst, risk mrkts r on edge cause of the TGA refill. By end of summer the mrkt will move past that and onto the lg amt of money printing humming along in the background. I have a few shitcoins to buy in the meantime pic.twitter.com/w52QABpgvJ

— Arthur Hayes (@CryptoHayes) June 6, 2023

Which companies were affected by the SEC enforcement action

The SEC has taken enforcement actions against various companies in the past, including Citigroup, Deutsche Bank AG, Goldman Sachs, and OppenheimerFunds, among others. Securities and Exchange Commission has also taken enforcement actions against individuals and investment advisers, such as BKCoin and Principal Kevin Kang.

 Additionally, the SEC has taken enforcement actions related to financial reporting, accounting, and auditing, but it is not clear which companies were involved in these actions. In FY22, the SEC filed 760 total enforcement actions, including actions against the Brink’s Company and the co-founder of a technology company.

 The Securities and Exchange Commission has also taken enforcement actions related to insider trading and FCPA cases, but it is not clear which companies were involved in these actions.