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On-chain data shows that addresses related to Binance are recording outflows following the lawsuit filed against it by the Commodity Futures Trading Commission (CFTC).
Crypto intelligence platform Arkham Intelligence dashboard showed that the value of the wallets connected to the crypto exchange decreased by $1.46 billion since the news broke.
According to the data, the withdrawals were populated by transactions from retail investors who were withdrawing their assets from the exchange.
Source: Arkham Intelligence
Meanwhile, DeFillamaās centralized exchangesā transparency dashboard showed that the exchange had processed $562 million in withdrawals in the last 24 hours ā 24 times higher than the amount processed by its closest rival, Bitfinex.
Blockchain analytical firm Nansen shows that Binance holds $63.49 billion worth of cryptocurrencies.
Meanwhile, the flood of these withdrawals pales compared to thoseĀ recorded in November 2022 when FTX collapsed. At the time, BinanceĀ processedĀ over $6 billion in withdrawals over seven days.
More recently, the exchange processed nearly $1 billion in withdrawals following regulatory actions against its stablecoin product Binance USD (BUSD)
FUD on Binance rises
Several crypto community members fear the lawsuit might fatally affect Binanceās operation.
A partner at MetaCartel Ventures DAO, Adam Cochran, said the CFTC is āattempting to strike a fatal blow to Binance.ā Cochran highlighted that the lawsuit could make āBinance liable for billions upon billions of dollars in fines.ā
He added:
ā[The] only semi-safe path for Binance here is likely a settlement in which CFTC would still push for the billions in make whole, disgorgement and civil penalty payments but may allow CZ et al to avoid admission of guilt.ā
Following the news, Binance CEO Changpeng āCZā Zhao tweeted the number ā4.ā CZ has previously said the number means āFUDā (fear, uncertainty, and doubt).
The post Binance-linked addresses plunge by over $1B following CFTC lawsuit appeared first on CryptoSlate.
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