Cryptocurrency

Binance-linked addresses plunge by over $1B following CFTC lawsuit

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CoinDesk Consensus

On-chain data indicates that addresses associated with Binance have recorded exfiltration following a lawsuit filed against Binance by the Commodity Futures Trading Commission (CFTC).

Crypto intelligence platform Arkham Intelligence Dashboard showed that the value of wallets connected to crypto exchanges has dropped by $1.46 billion since the news broke.

Data showed that withdrawals were dominated by trades from retail investors who were withdrawing assets from the exchange.

binance withdrawal
Source: Arkham Intelligence

Meanwhile, DeFillama’s centralized exchange transparency dashboard showed that the exchange had processed $562 million in withdrawals in the last 24 hours. That’s 24 times more than his closest rival, Bitfinex, handles.

Blockchain analytics firm Nansen claims that Binance hold Cryptocurrencies worth $63.49 billion.

On the other hand, these withdrawal floods pale in comparison to those recorded in November 2022, when FTX collapsed. At the time, Binance had processed over $6 billion in withdrawals in seven days.

Most recently, the exchange processed nearly $1 billion in withdrawals following regulatory action on its stablecoin product, Binance USD (BUSD).

Binance FUD Rise

Some members of the cryptocurrency community fear that the lawsuit could have a fatal impact on Binance’s operations.

MetaCartel Ventures DAO partner Adam Cochran said that the CFTC is “trying to deal a fatal blow to Binance.” Cochrane stressed that the lawsuit “could result in billions of dollars in fines for Binance.”

he Added:

“[The] The only semi-safe path for Binance here is likely to be a settlement where the CFTC will continue to claim billions of dollars and require the payment of civil penalties, but it would allow CZ et al to avoid pleading guilty. It is possible to “

Following the news, Binance CEO Changpeng ‘CZ’ Zhao said: murmured Number “4”. CZ previously said the numbers meant “FUD” (Fear, Uncertainty, Doubt).

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