The U.S. Securities and Exchange Commission (SEC) sued major cryptocurrency exchanges Binance, Binance US, and Coinbase in four days from June 5 to 8. , The net outflow from these three exchanges amounted to about 4 billion dollars (560 billion yen, 1 dollar 140 yen conversion).
$3.1 billion net outflow from Ethereum network, $864 million for Bitcoin (BTC). Data are from Nansen and Glassnode, and net outflows mean that withdrawals (withdrawals) exceeded deposits (deposits).
Withdrawals were carried out as usual on both exchanges.
Markets shaken by SEC lawsuit
The SEC first filed a lawsuit against Changpeng Zhao, the founder and CEO of Binance and Binance US, on Wednesday, alleging multiple alleged violations of federal securities laws. The following day, June 6, he sued Coinbase for providing unregistered securities.
The cryptocurrency market was rocked by the lawsuit, with tokens that the SEC deemed securities in the lawsuit, including Binance Coin (BNB), Cardano (ADA) and Polygon (MATIC), seeing the biggest losses last week.
Bitcoin and Ethereum were at one point significantly overvalued compared to other exchanges as traders and market makers began pulling out of Binance.US as the SEC sought to freeze its assets. traded.
Binance Net Outflow Largest Since December 2022
Binance, the world’s largest cryptocurrency exchange by trading volume, saw $2 billion in net outflows from the Ethereum blockchain in the last four days, according to Nansen data. This amount includes Ethereum (ETH) and tokens based on the Ethereum blockchain.
According to Glassnode data, the net outflow of Bitcoin (BTC) during the same period was about $838 million (31,868 BTC).
The net outflow on the 7th reached 13,953 BTC, the largest net outflow in a single day since December 2022. In December 2022, fears abounded with the collapse of major exchange FTX, and a report on Binance USD (BUSD) reserves took a toll on investor confidence.
However, according to Binance’s crypto wallet, net withdrawals last week were quite large, but only about 5% of the exchange’s total assets.
Coinbase’s net outflow for the same four days was $1 billion for the Ethereum network and $25 million for Bitcoin.
Binance US Ethereum Blockchain Net Outflow of $75 Million, Bitcoin Unknown Due to No Data.
Binance US recommends USD withdrawals
Binance US said on the 9th that users should withdraw USD as soon as possible after the SEC’s “extremely aggressive and coercive tactics” against the company. Binance US suspends US dollar deposits. We are planning to delist our USD trading pair soon and will temporarily move to a crypto-only exchange.
｜Translation: coindesk JAPAN
｜Editing: Rinan Hayashi
| Image: CoinDesk
｜Original: SEC Clampdown Spurs $4B Deposit Flight From Binance, Coinbase and Binance.US