Binance Saw Net Outflows of $69 Million in One Hour
Traders and investors are withdrawing funds from Binance after the SEC announced lawsuits against the exchange and its CEO. Blockchain data analyzed by Nansen reveals Binance experienced a significant net outflows as traders and investors cut counterparty risk.
In the wake of the recent lawsuit filed against Binance and its CEO Changpeng Zhao by the U.S. Securities and Exchange Commission (SEC), cryptocurrency traders have been rapidly withdrawing their funds from the crypto exchange.
According to data analyzed by blockchain intelligence platform Nansen, Binance has experienced significant net outflows as traders and investors reduce counterparty risk following the SEC’s announcement of legal action against the exchange.
Nansen reports traders withdrew $125 million in digital assets from Binance within a single hour. Conversely, the platform only received $56 million in deposits during that same hour. This reflects a substantial net outflow of funds from the exchange in that brief period.
However, this recent wave of withdrawals pales compared to the massive outflows Binance experienced in February. Regulatory actions taken against New York-based BUSD issuer Paxos by the New York Department of Financial Services and a Wells Notice issued to Binance by the SEC led to over $2 billion worth of BUSD outflows at that time.
Responses from the community have varied, with some users expressing curiosity about the volume of future outflows, while others note Binance has experienced a consistent outflow of funds in recent months. For instance, user @0x85_me shared that Binance has witnessed a consistent drain of funds in the past few months.
- Binance became the first cryptocurrency exchange to partner with singer The Weeknd. The partnership will provide fans with special NFT collections, create cobranded tour merchandise, and release a special collection for the tour.
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