Investors withdrew $1.6 billion from Binance after CFTC lawsuit

By Selena On Mar 29, 2023

According to Nansen, Binance saw $1.6 billion in withdrawals after being sued by regulators. Also, according to Reuters, investors withdrew $1.6 billion from Binance since Monday owing to Commodities Futures Trading Commission legal activities (CTFC). Investors withdrew roughly $134.8 million from Binance in the last 24 hours, according to Messari.

While Binance saw negative net flows in the last 24 hours, several of its competitors experienced positive net flows. Bitstamp received $12.48 million in deposits, while the Gemini exchange received $11 million. Following the FTX collapse, Binance allowed the withdrawal of almost $12 billion in assets in less than two months. In mid-December, the single-day withdrawal reached $3 billion.

Source: Messari

The exchange, though, still maintains a balance of more than $64 billion. Around 75% of Binance’s total reserves comprise USDT, Bitcoin (BTC), Ethereum (ETH), and BNB.

Source: Nansen

On Monday, the CFTC sued the exchange and its CEO, Changpeng “CZ” Zhao, for violations of derivatives and trading laws. Binance is also accused of violating anti-money laundering (AML) and know-your-customer (KYC) regulations, according to the authority.

Zhao described the case as an “unexpected and disappointing civil complaint.” “The complaint appears to contain an incomplete recitation of facts,” he argues, “and we do not agree with the characterization of many of the issues alleged in the complaint.”

According to Martin Lee, a research analyst at Nansen, the outflows were larger than typical, although not as high as on December 13, when investors withdrew $3 billion from Binance due to concerns over the company’s reserves.

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