Binance sees US$627 mln in net Ethereum outflow following CFTC lawsuit

Timmy Shen

1 year ago

Binance Chief Executive Officer Changpeng Zhao. Image: Binance's blog post

Binance saw about US$627 million in net Ethereum-related withdrawals in the 24 hours through Tuesday morning, data from blockchain analytics platform Nansen showed. This followed the Monday lawsuit filed by the Commodities Futures Trading Commission against the world’s largest cryptocurrency exchange for alleged violations of derivatives rules.

Fast facts

Binance held about US$64 billion worth of assets in publicly disclosed wallets as of Wednesday morning, according to Nansen data.
For the seven days through Tuesday morning, the data showed Binance had US$2.1 billion in net withdrawals of Ether and Ethereum-related assets.
However, the withdrawals are significantly lower than what the exchange experienced in December, when daily outflows at one stage surged to US$3 billion following the collapse of the FTX exchange amid fraud allegations, according to the Nansen data. Binance’s stablecoin outflows reached a record high on Dec. 13 at US$5.78 billion, CryptoQuant data showed.
Binance’s stablecoin outflows reached US$1 billion on Monday and US$810.8 million on Tuesday, data from CryptoQuant showed. Such withdrawals reached a new high for this year at US$2.56 billion on March 13 after the stablecoin USDC temporarily lost its peg to the U.S. dollar on March 11 and 12.
Binance also saw US$2.3 billion in stablecoin outflows on Feb. 13 after the New York Department of Financial Services ordered Paxos to stop issuing Binance USD (BUSD) stablecoin.
On Monday, the CFTC filed a civil lawsuit against Binance and its chief executive officer Changpeng Zhao, alleging the company violated derivatives rules by allowing U.S. residents to trade various financial instruments involving digital assets without licensing approval.
In a Tuesday blog post, Zhao rejected allegations of wrongdoing, saying the CFTC complaint “appears to contain an incomplete recitation of facts.”