- Binance outflows on Ethereum reach nearly $800 million
- Binance stablecoin reserves maintain stability.
Following the lawsuit filed by the SEC against Binance and its CEO CZ, investors have withdrawn approximately $790 million from the cryptocurrency exchange and its US affiliate, Binance.US, within the past 24 hours.
Data firm Nansen reported that Binance experienced net outflows of $778.6 million in crypto tokens on the Ethereum blockchain, while Binance.US saw net outflows of $13 million.
SEC Lawsuit Impact
The SEC’s lawsuit accuses Binance of deceptive practices and violating securities laws by artificially inflating trading volumes, diverting customer funds, and misleading investors about market surveillance controls. Binance has stated that it has been cooperating with the SEC’s investigations and plans to defend its platform vigorously.
The impact of the SEC charges has reverberated through the crypto market. Bitcoin, the largest cryptocurrency, experienced a more than 5% decline on Monday, its most significant daily drop since April. Binance’s native cryptocurrency, BNB, also suffered, reaching a nearly three-month low.
Binance Reserves
Binance’s reserve assets experienced a net outflow of approximately $1.4 billion in the first hour after news of the SEC charges broke, accounting for 2.6% of its total reserve assets of $52.9 billion. However, it is essential to note that Binance maintains a healthy stablecoin balance of over $8 billion.
While the net outflows resulting from the SEC lawsuit are substantial, they are comparatively smaller than previous legal challenges faced by Binance. The exchange’s reserve assets remain significant, and its stablecoin balance provides stability.
Nevertheless, the negative market sentiment surrounding Binance has influenced traders’ preferences, with many turning to alternative exchanges such as OKX, which has experienced an inflow of over $190 million. The repercussions of the SEC’s legal action continue to unfold in the cryptocurrency industry.
