- The US SEC has sued both Coinbase and Binance for allegedly violating securities laws.
- Most of the outflows are occurring through the Ethereum network.
- Between Monday and Thursday, the Ethereum network alone saw net outflows of $3.1 billion.
The U.S. Securities and Exchange Commission (SEC) first sued Binance and its U.S. affiliate that operates Binance.US, before broadening the lawsuit to include Coinbase. The SEC on Monday filed a lawsuit against Binance, its U.S. company Binance.US, and CEO Changpeng “CZ” Chao for violating federal securities laws. Then on Tuesday, it filed a lawsuit against Coinbase for allegedly selling unregistered securities to the public.
The SEC lawsuit has caused panic among investors, especially as the SEC claims that some crypto assets listed on exchanges are securities rather than digital assets. Tokens identified as securities have recorded significant price drops, with Binance’s BNB, Polygon’s MATIC and Cardano’s ADA suffering the most.
$4 billion outflow in 4 days
Binance, Binance.US and Coinbase saw net outflows of $3.1 billion through the Ethereum network and 864 million in Bitcoin (BTC) Monday through Thursday, according to data from blockchain analytics firms Nansen and Glassnode. experienced a net outflow of dollars.
Despite regulatory difficulties, the exchange processed withdrawals quickly throughout the week, with no reported delays so far.
Binance, the world’s largest cryptocurrency exchange by trading volume, has seen a net outflow of $2 billion on the Ethereum blockchain in just four days, according to Nansen data. This total includes all Ethereum-based tokens, including ETH. BTC withdrawals exceeded deposits by about 31,868 BTC ($838 million), according to Glassnode data.
Binance posted a massive net outflow of 13,953 BTC on Wednesday, its largest daily outflow since December when investor confidence was undermined by a flawed reserves report and the collapse of rival exchange FTX. .
According to Binance’s crypto wallet, the outflow seen this week was huge, but only about 5% of all assets held on the exchange.
According to Nansen, Binance.US recorded a net outflow of $75 million from the Ethereum network. This exchange is not tracked by his Glassnode, making it difficult to trace the outflow of BTC. However, it came under the wrath of the SEC and asked for an order to freeze all .Binance.US assets.
According to Nansen, Coinbase saw a net outflow of $1 billion from the Ethereum network Monday through Thursday. On Coinbase, he had $25 million worth of Bitcoin stolen, according to Glassnode data. Binance
