See More

Binance Users Rush to Withdraw $1.6 Billion After CFTC Lawsuit

1 min
Updated by Geraint Price
Join our Trading Community on Telegram

In Brief

  • Investors withdrew $1.6 billion from Binance after CFTC lawsuit.
  • The CFTC alleges Binance and Changpeng Zhao violated derivatives and trading rules.
  • Binance has a balance of over $64 billion.
  • promo

According to data from Nansen, Binance, the world’s largest exchange by trading volume, saw withdrawals of $1.6 billion after it was sued by regulators.

Reuters reported that investors withdrew $1.6 billion from Binance since Monday due to legal actions from the Commodity Futures Trading Commission (CTFC). According to the on-chain data provider Messari, investors withdrew over $134.8 million from Binance in the past 24 hours. 

Binance Users Switching to Competitors?

While Binance had negative net flows in the past 24 hours, some of its competitors witnessed positive ones. Bitstamp had a deposit of $12.48 million, while $11 million were deposited in the Gemini exchange.

Notably, after the FTX collapse, Binance facilitated withdrawals of over $12 billion worth of assets in under two months. The single-day withdrawal went as high as $3 billion in mid-December.

Binance has a negative net flows in past 24 hours, data from Messari
Source: Messari

However, the exchange still has a balance of over $64 billion. USDT, Bitcoin (BTC), Ethereum (ETH), and BNB make up over 75% of Binance’s total reserves.

Binance has a total deposit of over $64 billion, source Nansen
Source: Nansen

Both Binance and CZ Face Legal Action

On Monday, the exchange and its Chief Executive Officer (CEO) Changpeng “CZ” Zhao were sued by the CFTC for violating derivatives and trading rules. The authority also alleges that Binance violated anti-money laundering (AML) and know your customer (KYC) rules.

Zhao called the lawsuit an “unexpected and disappointing civil complaint.” He says, “The complaint appears to contain an incomplete recitation of facts, and we do not agree with the characterization of many of the issues alleged in the complaint.”

Got something to say about this article or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or Twitter.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2264-1.png
Harsh Notariya
Harsh Notariya is a journalist at BeInCrypto, who writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created educational reports on...
READ FULL BIO
Sponsored
Sponsored