Cryptocurrency exchanges, accused by the US Securities and Exchange Commission (SEC) of violating US laws, are experiencing a massive withdrawal of funds from customers' personal accounts, but so far they are coping with the outflow of assets.
The lawsuits filed by the SEC against Binance, Binance.US and Coinbase provoked an outflow of funds totaling $4 billion, according to open blockchain data. From Monday to Thursday, the cumulative net outflow was $3.1 billion on the Ethereum network and $864 million in bitcoins, according to analyst agencies Nansen and Glassnode — a net outflow means that withdrawals were higher than deposits. Platforms work out all transactions in good faith.
Last Monday, the SEC sued the international crypto exchange Binance, its American version Binance.US and personally the head of the platforms, Changpeng Zhao, for a number of violations of US securities laws. The next day, the agency filed a lawsuit against Coinbase, accusing the platform of selling unregistered securities to the public. These actions stirred up the cryptocurrency market: the BNB, ADA and MATIC tokens, classified by the regulator as securities, fell significantly in price over the week. And due to the SEC's desire to freeze the assets of the Binance.US and the subsequent refusal of the platform from the dollar, bitcoin and the Ethereum cryptocurrency on it, on the contrary, rose in price, as traders began to withdraw assets.
According to Nansen, Binance, the world's largest crypto exchange in terms of trading volume, experienced a net outflow of $2 billion on the Ethereum blockchain alone in four days - its own ETH coin and other cryptocurrencies of this network went into account. Bitcoin withdrawals over the same period exceeded their deposit by $838 million, Glassnode added. The net outflow of funds in the amount of 13,953 bitcoins on Wednesday was the largest daily decline since December last year, when investors lost confidence in it due to untrue reports about the site's reserves - then the hype around the bankruptcy of the FTX crypto exchange had not yet subsided.
In absolute terms, the outflow of funds, of course, seems significant, but if you take into account the data on Binance crypto wallets, this is only 5% of all platform assets. Coinbase had a net outflow of funds through Ethereum over the same period amounted to $1 billion, according to Nansen; and $25 million in bitcoins, according to Glassnode.
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