Massive Outflow of Crypto from Binance Following CFTC Charges
Binance has experienced a significant outflow of millions of dollars in crypto shortly after it was slapped with civil charges by US regulators on Monday. On-chain data from Watcher.pro shows that the exchange has experienced $600 million in net outflows over the past 24 hours alone.
Binance has been under scrutiny from regulators worldwide due to concerns over compliance with various consumer protection laws, including flouting KYC obligations and lacking proper registrations. The US Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its CEO, Changpeng Zhao (CZ), accusing them of violating several consumer protection laws.
According to Watcher.pro, Binance has undergone around $2.1 billion in outflows over the last 7 days, with Monday’s outflow being above average. The data shows that Binance holds $65.2 billion in crypto, based on wallets that the firm has publicly tagged as its own.
The news of the outflow comes as a surprise to many in the cryptocurrency industry, as Binance has been one of the most popular and trusted exchanges. However, the recent civil charges have clearly shaken the confidence of some investors, leading to a massive outflow of crypto from the platform.
Binance’s CEO, Changpeng Zhao, responded to the CFTC lawsuit, disputing the allegations and stating that the company takes compliance seriously. He also assured users that their funds are safe and that the platform will continue to operate as usual.
It remains to be seen how the civil charges will impact Binance in the long term, but the massive outflow of crypto is undoubtedly a cause for concern. As regulators worldwide increase their scrutiny of the cryptocurrency industry, it is essential for exchanges to ensure that they are fully compliant with all relevant laws and regulations to maintain the trust of their users.
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