After being sued by the US regulator–the Commodities Futures Trading Commission, investors withdrew as much as $1.6 billion worth of cryptocurrencies from Binance, the largest cryptocurrency exchange in the world. Since the CFTC complaint, Binance has recorded cumulative net outflows of $1 billion.
In a lawsuit against the biggest cryptocurrency trading exchange in the world, the CFTC has charged Binance and its CEO Changpeng Zhao with operating illegally in the country.
Following the CFTC’s complaint, Binance saw $1.6 billion in total withdrawals and $852 million in the previous 24 hours, as reported by blockchain data tracker Nansen. This is an increase over the $385 million per day average over the previous two weeks.
On-chain data firm CryptoQuant also released an analysis of Binance’s state following the CFTC lawsuit in the United States. The net flows and reserves of Bitcoin, Ethereum, and stablecoins were compared during the regulatory FUD following the FTX crash, the BUSD crackdown, and the CFTC lawsuit.
Net Flows Stay Within the Historical Ranges
Binance recorded the largest net outflows of 40,353 BTC on December 12 during the regulatory FUD that followed the FTX fiasco in December. Between December 10 and 16, the exchange also registered a cumulative net outflow of 78,744 BTC. During the BUSD FUD on February 12 and after the CFTC complaint, Binance saw its largest daily net outflow of 5,027 BTC and 4,505 BTC, respectively.
Binance also saw the largest daily net outflow of 278k ETH on December 12 during the regulatory FUD. Following the BUSD FUD and the CFTC lawsuit, the daily net outflow of 79,706 and 76,146 ETH occurred.
On-chain data for stablecoins shows net outflows of $871 million, with a daily peak outflow in February of $671 million. Net Flow-Reserve Ratio, as highlighted by CryptoQuant, shows that net flows have stayed within historical ranges.