Altcoins have suffered the biggest losses since Binance’s CEO Changpeng Zhao and the SEC filed a lawsuit.

The exchange is accused of offering a variety of unregistered security to the public. These include Binance’s BNB and BUSD stablecoin as well as Solana (SOL), Cardano ADA, Polygon (MATIC), Coti COTI, Algorand ALGO, Axie infinity AXS, Filecoin FIL, Cosmos ATOM, Sandbox SAND, and Decentraland MANA.

On the news, the entire cryptocurrency market is down. This includes declines between 5% and 10% in many of the tokens listed above.

Aleksander Leonard Larsen, CEO of Sky Mavis and developer of Axie Infinity said that they were “looking into” the issue, but noted that it “doesn’t change a lot.” We will continue to build our products.”

Polygon refused to comment and no other tokens were available for comment as of the publication date.

Crypto Tokens Considered Securities by the SEC (Lyllah Ledesma/Messari).

Bitcoin (BTC), the world’s biggest cryptocurrency by market capital, was recently trading at $25,800, down 5%. Ether (ETH), the world’s largest cryptocurrency by market cap, is currently down 4.5% at $1,811.

Eliza Gkritsi contributed to the reporting for the story. Margaux Nijkerk, Brad Keoun and Brad Keoun also contributed.

UPDATE (5 June, 20:00 UTC: Adds comments by Sky Mavis and Polygon.

Stephen Alpher edited the book.