Withdrawals from Binance increased as the US Securities and Exchange Commission (SEC) sued the company and its CEO, Changpeng "CZ" Zhao, for violating federal securities law on Monday.
According to analytics firm Nansen, blockchain data shows that the stock market has seen net outflows of around $69 million in the past hour.
However, the fund inflows and outflows in the last 24 hours are still in the $100 million positive zone.
According to Nansen, during the 1-hour period, investors attracted $125 million in digital assets compared to $56 million in deposits during that period. However, this data does not include Bitcoin transfers.
According to 0xScope data, the net outflow of Binance reserve assets in the last hour was approximately $1.4 billion, accounting for 2.2% of total reserve assets of $62.5 billion.
These exits came as the SEC lawsuit alleges Binance, the world's largest cryptocurrency exchange by trading volume, violated multiple federal securities laws. The lawsuit alleges that Binance has offered unregistered crypto securities to the public, including BNB and BUSD tokens, allowing client funds to mix.
However, Binance CEO Changpeng Zhao stated in his last post, which has been deleted, that this case is a “preview” for what will happen next. In addition, he gave the message “together we are strong”.
*Not investment advice.
