After SEC Sued Binance, Lot Of Money Left The Exchange
Since the SEC case, investors have taken out at least $292.9 million in BTC and $165.4 million in ETH.
After the latest lawsuit from the U.S. Securities and Exchange Commission (SEC), thousands of crypto traders are pulling their money out of the world’s biggest crypto exchange, Binance. This is causing a large net outflow of funds from the platform.
On-chain data from the blockchain analytics tool CryptoQuant shows that 11,380 BTC left Binance on the very first day after the lawsuit was filed. At the time of this writing, bitcoin was worth $25,739. This means that a huge $292.9 million worth of BTC has left the system.
CryptoQuant’s data also showed that the net outflow of ether (ETH) had hit 91,223, which at current market prices is worth about $165.4 million. Investors are sending out a lot of money because they want to avoid any counterparty risks caused by the SEC case against Binance.
Nansen also confirmed that more ETH was withdrawn, which is interesting, but the real numbers are a little bit different.
Netflow to Binance over the past 24 hours is $778.6M negative on Ethereum – $871.7M in and $1.65B out
Over the past hour, netflow on Ethereum continues to be negative at $35.7M on Ethereum – $14.8M in and $50.5M out
CryptoQuant, however, pointed out that even though the recent increase in withdrawals from Binance is bigger than the amount recorded by the exchange after it was sued by the CFTC in mid-March, it is smaller than some other big exits.
The story talked about the time of “regulatory FUD” after FTX went down, when Binance lost 40,353 BTC, worth more than $690 million, in one day. Between December 10 and December 16, 2022, the market lost a net of $1.4 billion in BTC. At the same time, the most ETH was leaving the system.
SEC Lawsuit Causes Panic
The most recent withdrawals are because the SEC recently said that Binance and its CEO, Changpeng Zhao, broke several federal securities laws.
The lawsuit, which was brought on Monday, said that Binance.US, the exchange’s American affiliate, sold unregistered crypto securities, such as BNB and BUSD tokens, without permission.
The SEC said that the exchange moved and mixed customer funds without permission and that CZ “secretly” kept control of Binance. This was just one of many claims.US, even though they say they are not part of the US.
Binance has denied the SEC’s claims, but the lawsuit has already caused new panic in the cryptocurrency market, sending BNB and other big assets into the red.
