Hundreds of millions of dollars in crypto was withdrawn from Binance shortly after the exchange was slapped with civil charges by US regulators on Monday, on-chain data shows.
According to Nansen, the exchange has experienced $400 million in net outflows over the past 24 hours alone.
- By comparison, Binance has undergone over $2 billion in outflows over the last seven days, meaning Monday was above average.
- Meanwhile, entities Nansen calls “smart money” traders withdrew at least $9 million from the firm within 24 hours.
- Data from Thanefield capital indicated that there were large exchange stablecoin outflows totaling $1.5 billion in 12 hours just prior to the indictment.
- $850 million worth came from Binance specifically, with an additional $240 million in outflows from the exchange an hour after the charges were laid.
- Nansen’s data shows that Binance holds $63.7 billion in crypto, based on wallets that the firm has publicly tagged as its own. Glassnode data shows this includes over $2 billion worth of USDT, $17 billion worth of Bitcoin, and $8.1 billion worth of Ether.
- Binance and its CEO, Changpeng Zhao (CZ), were sued by the CFTC for violating various consumer protection laws, including flouting KYC obligations and lacking proper registrations.
- The country’s other top exchanges are being targeted by the Securities and Exchange Commission (SEC), with Kraken having paid a $30 million fine for failing to register its staking service, and Coinbase receiving a Wells Notice from the agency last week.
- Binance experienced billions of dollars in outflows roughly one month after the collapse of rival exchange FTX. At the time, CZ the event ‘business as usual.’