Users of the Binance cryptocurrency exchange withdrew 3611 BTC (~ $97.6 million at the time of writing) in a day after the lawsuit CFTC. This is evidenced by the data Coinglass.
Competing platforms, including Coinbase, Bitfinex and Gemini, recorded an increase in the reserves of the first cryptocurrency.
The total balance of bitcoins on exchanges has been declining since March 20. Over the past week, about 27,000 BTC (~$730 million) have been withdrawn in total.
Binance still owns $63.36 billion worth of digital assets, including $2 billion in USDT, $17 billion in Bitcoin, and $8.1 billion in Ethereum.
According to Thanefield Capital, a few hours before the CFTC lawsuit, almost $1.5 billion in cryptocurrency was withdrawn from the largest trading floors. Of these, $850 million came from Binance.
1/ Large on-chain movements prior to the Binance indictment
A few hours before the Binance CFTC Indictment, there were large stablecoin withdrawals across centralized exchanges, totaling almost $1.5B in just 12 hours
Notably, Binance itself saw an $850M outflow. pic.twitter.com/yLD7f1cgmB
— An Ape’s Prologue (@apes_prologue) March 27, 2023
On March 27, the CFTC filed a lawsuit against Binance and its CEO Changpeng Zhao. According to the agency, the platform violated the rules for trading derivatives by operating without proper registration.
According to CoinDesk citing a Bernstein analyst report, as part of a possible settlement, the Commission may require Binance to cease operations in the US. However, experts expect the platform to “protect its dominant international business, which is its cash cow.”
In response to the allegations, Zhao said the regulator’s claims contain “an incomplete statement of the facts” and his company disagrees with the characterization of many of the items.
Source: Cryptocurrency
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