The CFTC’s legal action against Binance has reverberated across the cryptocurrency exchange and its clientele. The aftermath of the lawsuit has resulted in a significant reduction in funds on the platform. Nevertheless, recent on-chain data has indicated that a substantial amount was withdrawn before the announcement of the CFTC’s lawsuit.
According to Nansen, a blockchain analytics company, a staggering sum of over $850 million was withdrawn from Binance in the hours leading up to the federal regulator’s civil lawsuit against the cryptocurrency exchange for purportedly flouting US regulations.
A recent study by Thanefield Capital states that a staggering $1.5 billion was withdrawn from various centralized cryptocurrency exchanges, such as Coinbase and Kraken, before the Binance debacle. These withdrawals, made in the form of stablecoins, were allegedly executed mere hours before the CFTC indictment against Binance.
Upon conducting a thorough examination, Thanefield Capital has uncovered that a mere sixty minutes following the CFTC’s legal action against Binance, the cryptocurrency exchange experienced a substantial outflow of $240 million. Additionally, Nansen has reported that over $400 million has been withdrawn and directed towards Ethereum-based funds within the last twelve hours. These findings indicate a significant shift in the market and highlight the impact of regulatory actions on the cryptocurrency industry.
Nansen provided further clarification in a subsequent tweet, shedding light on the fact that this recent occurrence of a substantial outflow of funds from the crypto exchange platform was not an isolated incident. In fact, on December 13th of last year, Binance facilitated a staggering $3 billion in withdrawals in a single day.
Nansen’s analysis reveals that despite notable withdrawals, Binance’s crypto asset portfolio remains robust, boasting a staggering $63 billion valuation. This impressive sum includes a whopping $19 billion in USDT, $14.5 billion worth of Bitcoins, and $7.5 billion in Ether, alongside a diverse range of other tokens.
