Bitcoin hovers near 2-1/2 month low as Binance SEC lawsuit rattles investors

Bitcoin prices steadied on Tuesday but remained near their lowest in more than two months after a steep dive overnight, as investors grappled with news the U.S. securities regulator sued crypto exchange Binance, dealing a severe blow to the industry.

Bitcoin, the world’s largest cryptocurrency, was last at $25,736, down 0.01% on Tuesday, pinned near a more than two-month low. It had slumped more than 5% in the previous session, the largest daily decline since April 19.

The U.S. Securities and Exchange Commission on Monday sued Binance, the world’s largest cryptocurrency exchange, and its CEO Changpeng Zhao, alleging that Zhao was secretly controlling Binance.US as part of a “web of deception” to evade U.S. laws, among other charges.