06-07-2023, 12:03 AM
Binance Faces Withdrawal Pressure in Wake of SEC Lawsuit
<p class="MsoNormal">Investors are pulling out their funds from Binance following the US securities regulator’s lawsuit against the
top cryptocurrency exchange for alleged multiple
violation of federal securities laws. The Securities and Exchange Commission
(SEC) in a complaint filed on Monday <a href="https://www.financemagnates.com/cryptocurrency/sec-charges-binance-ceo-over-illegal-exchanges-commingling-of-client-fund/" target="_blank" rel="follow">accused Binance of operating illegal exchanges</a>, offering unregistered
crypto asset securities and commingling client funds, among other allegations. </p><p class="MsoNormal text-align-justify">Fund Withdrawal from Binance Tops $1B</p><p class="MsoNormal">According
to <a href="https://dune.com/queries/1639250/2715750" target="_blank" rel="follow">a Dune Analytics chart</a> by 21Shares, a crypto investment product
provider, outflow from the trading platform reached about $1.5 billion on Monday (yesterday) with
inflow standing at $783 billion and net flow at $701.8 billion. This is in
sharp contrast to outflow of $285.8 billion a day earlier. However, by Tuesday (today), outflow or withdrawal slowed down to 587.5 million with inflow improving to about $364.8 million</p><p class="MsoNormal">Data firm Nansen in a tweet on Tuesday also disclosed that users have
withdrawn about $1.65 billion in the past 24 hours from Binance via the
Ethereum blockchain. This compares to deposits or inflow of $871.7 million
within the period. In addition, net flow, or the difference between the total amount of money
flowing into and out of the exchange on Ethereum stood at a
negative of $778.6 million.</p><p class="MsoNormal">In particular, Nansen said investors on Binance.US, the crypto exchange’s US arm, withdrew about
$24.5 million compared to an inflow of $11.5 million and a negative net flow of
$12.9 million.</p><p class="MsoNormal">“Over the
past hour, netflow on
Ethereum continues to be negative at $35.7M on Ethereum - $14.8M in and $50.5M
out,” Nasen tweeted.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">Netflow to Binance over the past 24 hours is $778.6M negative on Ethereum - $871.7M in and $1.65B outOver the past hour, netflow on Ethereum continues to be negative at $35.7M on Ethereum - $14.8M in and $50.5M outTrack it here <a href="https://t.co/nwTgpXWhZY">https://t.co/nwTgpXWhZY</a> and filter for "Binance" <a href="https://t.co/jnNAN0QKVy">pic.twitter.com/jnNAN0QKVy</a></p>— Nansen ? (@nansen_ai) <a href="https://twitter.com/nansen_ai/status/1665999474685284353?ref_src=twsrc%5Etfw">June 6, 2023</a></blockquote><p class="MsoNormal">Binance
faced a similar withdrawal pressure in February when reports emerged that <a href="https://www.financemagnates.com/cryptocurrency/paxos-stops-busd-mint-after-sec-action-binances-cz-calms-funds-are-safe/" target="_blank" rel="follow">the SEC
plans to sue Paxos</a>, the issuer of Binance USD (BUSD) tokens, over supposed violations of user protection regulations. At the time, Binance saw about
$2.8 billion leave its platform within a 24-hour period, CoinDesk reports.</p><p class="MsoNormal text-align-justify">Crypto
Prices Drop</p><p class="MsoNormal">Meanwhile, SEC in its complaint accused Binance of unregistered offering and sale of its token BNB, stablecoin BUSD, and 10 other tokens: SOL (Solana), ADA
(Cardano), MATIC (Polygon), FIL (Filecoin), ATOM (Cosmos), SAND (Sandbox), MANA (Decentraland),
ALGO (Algorand), AXS (Axie Infinity) and COTI (COTI). </p><p class="MsoNormal">In response to the news, the prices of these tokens have experienced some
price drops, according to data on CoinMarketCap. For instance, the price of BNB currently stands at
about $279.55, down by 7.33% in the last 24 hours. On the other hand, the price
of BUSD only dropped marginally by 0.02% in the last 24 hours to $0.99.</p><p class="MsoNormal">In addition, data on CoinMarketCap shows that the price of the other tokens have slumped between about 5-15% between the said period.</p><p class="MsoNormal">Meanwhile,
in its complaint before the US district court in Columbia, SEC claimed that
Binance.US provided unregistered profit-generating programmes ‘BNB Vault’ and
‘Simple Earn’ as well as crypto staking products, to US investors. The securities watchdog also accused Binance and CEO/Founder Changpeng Zhao of commingling or
diverting customer assets to crypto market makers Sigma Chain and Merit Peak, entities both said to be
owned by Zhao. </p><p class="MsoNormal">However, Binance in a blog post published on Monday <a href="https://www.binance.com/en/blog/ecosystem/sec-complaint-aims-to-unilaterally-define-crypto-market-structure-8707489117122437402" target="_blank" rel="follow">dismissed the allegations</a>, saying that “all user assets on Binance and
Binance affiliate platforms, including Binance.US, are safe and secure.”</p><p class="MsoNormal">Citi chooses NetDania; FMA warns against imposter; <a href="https://www.financemagnates.com/forex/news-nuggets-6-june-citi-chooses-netdania-fma-warns-against-imposter/" target="_blank" rel="follow">read today's news nuggets</a>.</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
https://www.financemagnates.com//cryptoc...c-lawsuit/
<p class="MsoNormal">Investors are pulling out their funds from Binance following the US securities regulator’s lawsuit against the
top cryptocurrency exchange for alleged multiple
violation of federal securities laws. The Securities and Exchange Commission
(SEC) in a complaint filed on Monday <a href="https://www.financemagnates.com/cryptocurrency/sec-charges-binance-ceo-over-illegal-exchanges-commingling-of-client-fund/" target="_blank" rel="follow">accused Binance of operating illegal exchanges</a>, offering unregistered
crypto asset securities and commingling client funds, among other allegations. </p><p class="MsoNormal text-align-justify">Fund Withdrawal from Binance Tops $1B</p><p class="MsoNormal">According
to <a href="https://dune.com/queries/1639250/2715750" target="_blank" rel="follow">a Dune Analytics chart</a> by 21Shares, a crypto investment product
provider, outflow from the trading platform reached about $1.5 billion on Monday (yesterday) with
inflow standing at $783 billion and net flow at $701.8 billion. This is in
sharp contrast to outflow of $285.8 billion a day earlier. However, by Tuesday (today), outflow or withdrawal slowed down to 587.5 million with inflow improving to about $364.8 million</p><p class="MsoNormal">Data firm Nansen in a tweet on Tuesday also disclosed that users have
withdrawn about $1.65 billion in the past 24 hours from Binance via the
Ethereum blockchain. This compares to deposits or inflow of $871.7 million
within the period. In addition, net flow, or the difference between the total amount of money
flowing into and out of the exchange on Ethereum stood at a
negative of $778.6 million.</p><p class="MsoNormal">In particular, Nansen said investors on Binance.US, the crypto exchange’s US arm, withdrew about
$24.5 million compared to an inflow of $11.5 million and a negative net flow of
$12.9 million.</p><p class="MsoNormal">“Over the
past hour, netflow on
Ethereum continues to be negative at $35.7M on Ethereum - $14.8M in and $50.5M
out,” Nasen tweeted.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">Netflow to Binance over the past 24 hours is $778.6M negative on Ethereum - $871.7M in and $1.65B outOver the past hour, netflow on Ethereum continues to be negative at $35.7M on Ethereum - $14.8M in and $50.5M outTrack it here <a href="https://t.co/nwTgpXWhZY">https://t.co/nwTgpXWhZY</a> and filter for "Binance" <a href="https://t.co/jnNAN0QKVy">pic.twitter.com/jnNAN0QKVy</a></p>— Nansen ? (@nansen_ai) <a href="https://twitter.com/nansen_ai/status/1665999474685284353?ref_src=twsrc%5Etfw">June 6, 2023</a></blockquote><p class="MsoNormal">Binance
faced a similar withdrawal pressure in February when reports emerged that <a href="https://www.financemagnates.com/cryptocurrency/paxos-stops-busd-mint-after-sec-action-binances-cz-calms-funds-are-safe/" target="_blank" rel="follow">the SEC
plans to sue Paxos</a>, the issuer of Binance USD (BUSD) tokens, over supposed violations of user protection regulations. At the time, Binance saw about
$2.8 billion leave its platform within a 24-hour period, CoinDesk reports.</p><p class="MsoNormal text-align-justify">Crypto
Prices Drop</p><p class="MsoNormal">Meanwhile, SEC in its complaint accused Binance of unregistered offering and sale of its token BNB, stablecoin BUSD, and 10 other tokens: SOL (Solana), ADA
(Cardano), MATIC (Polygon), FIL (Filecoin), ATOM (Cosmos), SAND (Sandbox), MANA (Decentraland),
ALGO (Algorand), AXS (Axie Infinity) and COTI (COTI). </p><p class="MsoNormal">In response to the news, the prices of these tokens have experienced some
price drops, according to data on CoinMarketCap. For instance, the price of BNB currently stands at
about $279.55, down by 7.33% in the last 24 hours. On the other hand, the price
of BUSD only dropped marginally by 0.02% in the last 24 hours to $0.99.</p><p class="MsoNormal">In addition, data on CoinMarketCap shows that the price of the other tokens have slumped between about 5-15% between the said period.</p><p class="MsoNormal">Meanwhile,
in its complaint before the US district court in Columbia, SEC claimed that
Binance.US provided unregistered profit-generating programmes ‘BNB Vault’ and
‘Simple Earn’ as well as crypto staking products, to US investors. The securities watchdog also accused Binance and CEO/Founder Changpeng Zhao of commingling or
diverting customer assets to crypto market makers Sigma Chain and Merit Peak, entities both said to be
owned by Zhao. </p><p class="MsoNormal">However, Binance in a blog post published on Monday <a href="https://www.binance.com/en/blog/ecosystem/sec-complaint-aims-to-unilaterally-define-crypto-market-structure-8707489117122437402" target="_blank" rel="follow">dismissed the allegations</a>, saying that “all user assets on Binance and
Binance affiliate platforms, including Binance.US, are safe and secure.”</p><p class="MsoNormal">Citi chooses NetDania; FMA warns against imposter; <a href="https://www.financemagnates.com/forex/news-nuggets-6-june-citi-chooses-netdania-fma-warns-against-imposter/" target="_blank" rel="follow">read today's news nuggets</a>.</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
https://www.financemagnates.com//cryptoc...c-lawsuit/