Crypto Market Sheds $150 Billion, Reaction to Binance IRS Investigation 

Deepshikha  |  May 14, 2021

Value of Binance Coin and Bitcoin nosedived in the market as the report of Binance being investigated by the US Department of Justice was published. 

As the news came, Crypto markets continue to slide. Bitcoin, the digital gold of the market, has shaved about 25% off and seems to be losing its shine continuously due to some reason or other.  

Crypto Market Slides as Binance is Under Investigation 

This news has not brought profits to the long-term cryptocurrency holders today. According to reports, the total market capitalization of fallen cryptocurrencies is 10% within a day. The loss calculated is over $200 billion in the market. 

The data reads,

“Dogecoin (-15%), Bitcoin Cash (-15%), and Litecoin (-13%). Polkadot and Cardano have both managed gains, but Bitcoin, Ethereum, and Binance Coin also experienced double-digit losses.” 

As per reports, Binance Holdings is being investigated by the US Justice Department and Internal Revenue Service as officials look into the use of the exchange by employees and/or customers for money laundering and tax evasion.

However, Binance has denied any wrongdoing, and the report stresses that "not all inquiries lead to allegations of wrongdoing."

Binance Denied any Wrongdoing, Pointed its Anti-Money Laundering Program as Success

While stocking up in recent months, the exchange has pointed to its anti-money laundering program as a success. Back in March, the firm hired former Senator Max Baucus of Montana. Also, they added Brian Brooks, the Comptroller of the Currency to lead its US exchange.

Binance is hoping to put yesterday's Tesla debacle behind it. The CEO of electric car manufacturing company Tesla had announced that 

“The electric-car maker was ending its brief flirtation with accepting Bitcoin for Tesla purchases.”

The announcement steered the price of the digital asset to turn red. As per the latest data from Coinmarketcap, Bitcoin has now shed 25% of the price from its all-time high of around $64,000 of the previous month giving a massive jolt to the crypto market. 

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