Recently, one of the world’s largest crypto exchanges, Binance, experienced major BTC and stablecoin withdrawals after the US CFTC filed a lawsuit against them for violating trading and derivatives rules. As per the data provided by Nansen, more than 350 million USD in ETH-based funds were withdrawn in a single day from their platform, and around 3,600 bitcoin worth millions of dollars were withdrawn in the last couple of days.
Bitcoin worth millions of dollars were withdrawn from Binance in 24 hours
On Monday, i.e. 27th March 2023, the US CFTC sued popular crypto exchange Binance and its CEO Changpeng Zhao, alleging the exchange had violated specific trading and derivatives rules. The CFTC plans to impose monetary penalties and a ban on further registrations, which would not be good for the exchange. As the news became public, Binance experienced a huge number of withdrawals.
While discussing the matter, analysts from An Ape’s Prologue explained that a few hours before the Binance CFTC Indictment, large stablecoins were withdrawn across the centralised exchanges, totalling over 1.5 billion in only 12 hours. He added that Binance itself saw more than 850 million USD outflow and an additional 240 million USD outflow after the announcement.
Looking into the data provided by Dune Analytics and Nansen, we also know that over 400 million USD in ETH-based funds were withdrawn in 24 hours. By the time of writing, Nansen’s proof-of-reserves portal shows Binance hold 63.36 billion USD worth of crypto assets. Statistics also indicate that more than 150 million BUSD stablecoins were redeemed on Monday. There are over 7 billion BUSD in circulation today, and 7.1 billion of those tokens are held on Binance.
Binance saw the most bitcoin outflow over the last 24 hours
As you know, Binance experienced major BTC and stablecoin withdrawals after the US CFTC filed a lawsuit against them for violating trading and derivatives rules. After this news came out, Binance saw the most bitcoin outflow over the last 24 hours.
They are the ones who hold one of the largest caches of bitcoin, with over 240,000 BTC available in their cold wallet. However, over the past few days, they have lost more than 3,655 Bitcoin worth around 100 million due to the CFTC allegation. As per Coinglass’s record, more than 1000 bitcoin were withdrawn from Binance’s platform.
What are your thoughts about the CFTC’s lawsuit against Binance, a popular crypto exchange? Let us know in the comments below. And if you found our content informative, share it with your family and friends.
Also Read: Lost confidence in the monetary system could catapult Bitcoin to new heights, says Cathie Wood.
