Investors are pulling out their funds from Binance following the US securities regulator’s lawsuit against the
top cryptocurrency exchange for alleged multiple
violation of federal securities laws. The Securities and Exchange Commission
(SEC) in a complaint filed on Monday accused Binance of operating illegal exchanges, offering unregistered
crypto asset securities and commingling client funds, among other allegations.
According
to a Dune Analytics chart by 21Shares, a crypto investment product
provider, outflow from the trading platform reached about $1.5 billion on Monday (yesterday) with
inflow standing at $783 billion and net flow at $701.8 billion. This is in
sharp contrast to outflow of $285.8 billion a day earlier. However, by Tuesday (today), outflow or withdrawal slowed down to 587.5 million with inflow improving to about $364.8 million
Data firm Nansen in a tweet on Tuesday also disclosed that users have
withdrawn about $1.65 billion in the past 24 hours from Binance via the
Ethereum blockchain. This compares to deposits or inflow of $871.7 million
within the period. In addition, net flow, or the difference between the total amount of money
flowing into and out of the exchange on Ethereum stood at a
negative of $778.6 million.
In particular, Nansen said investors on Binance.US, the crypto exchange’s US arm, withdrew about
$24.5 million compared to an inflow of $11.5 million and a negative net flow of
$12.9 million.
“Over the
past hour, netflow on
Ethereum continues to be negative at $35.7M on Ethereum – $14.8M in and $50.5M
out,” Nasen tweeted.
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
Track it here https://t.co/nwTgpXWhZY and filter for “Binance” pic.twitter.com/jnNAN0QKVy
— Nansen 🧭 (@nansen_ai) June 6, 2023
Binance
faced a similar withdrawal pressure in February when reports emerged that the SEC
plans to sue Paxos, the issuer of Binance USD (BUSD) tokens, over supposed violations of user protection regulations. At the time, Binance saw about
$2.8 billion leave its platform within a 24-hour period, CoinDesk reports.
Crypto
Prices Drop
Meanwhile, SEC in its complaint accused Binance of unregistered offering and sale of its token BNB, stablecoin BUSD, and 10 other tokens: SOL (Solana), ADA
(Cardano), MATIC (Polygon), FIL (Filecoin), ATOM (Cosmos), SAND…
