Binance Endures $69M in Net Outflows Within an Hour, Amid SEC Charge: Nansen
Cryptocurrency traders are withdrawing funds from crypto exchange Binance as the U.S. Securities and Exchange Commission (SEC) sued the company and its CEO Changpeng “CZ” Zhao for violating federal securities law on Monday.
Blockchain data shows that the exchange endured some $231 million in net outflows over the past hour, according to blockchain intelligence platform Nansen.
Traders have withdrawn some $322 million of digital assets during this period, compared to the $91 million in deposits, per Nansen. The data excludes bitcoin (BTC) transfers.
While outflows are rising, this isn’t necessarily out of the ordinary yet. In February, Binance weathered some 830 million of net outflows over a 24 hour period as New York state regulators cracked down on Binance-related stablecoin BUSD, CoinDesk reported.
Binance’s crypto wallets hold some $55 billion of digital assets, according to Nansen data on exchange reserves.
The outflows came as the SEC lawsuit alleges that Binance, the world’s largest crypto exchange by trading volume, breached multiple federal securities laws. The suit said that Binance offered unregistered crypto securities, including BNB and BUSD tokens, to the general public and allowed for commingling of customer funds.
The SEC also alleges that CZ, the company’s chief executive officer, was “secretly” in control of Binance.US, an ostensibly separate entity operating in the U.S., and a CZ-owned entity had inflated Binance.US’s trading volume.
Edited by Aoyon Ashraf.
UPDATE (Jun. 5, 17:35 UTC): Updates headline and data. Adds data about digital assets on Binance. Adds context about prior withdrawals.
