• Binance experienced withdrawals of $1.6 billion since Monday, according to data from Nansen shared by Reuters.
• CFTC filed a lawsuit against Binance on March 27 accusing them of multiple regulatory violations related to operating a non-compliant cryptocurrency exchange.
• Users are reporting difficulty in off-ramping during this period via social media.
Binance Withdrawals Surge
Binance has experienced withdrawals of $1.6 billion since Monday, data from Nansen, shared by Reuters, showed. More than half of that, or $852 million, left the exchange in the last 24 hours – more than double the average daily withdrawal rate over the last two weeks which was calculated at $385 million. Research Analyst at Nansen Martin Lee said that although there is an increase in withdrawals due to recent regulatory actions, it is still less than what was seen in December 2022 when fears over Binance’s solvency were at their peak.
CFTC Sues Binance
The Commodities Futures Trading Commission (CFTC) filed a lawsuit against Binance on March 27th, accusing the exchange of multiple regulatory violations related to operating a non-compliant cryptocurrency exchange. CFTC Chair Rostin Behnam told CNBC that Binance intentionally swerved U.S laws while operating „a direct and clear method“ to access the American market.
Users Report Issues Off-Ramping
Binance users are reporting difficulty in off-ramping via social media platforms such as Reddit and Twitter with one user stating they initiated cash withdrawal via ACH network over a week ago but have yet to receive it as of yet despite contacting customer service for assistance. CryptoQuant CEO Ki Young Ji criticized The Wall Street Journal article claiming that Binance had experienced $2 billion worth Ethereum outflows over the last seven days deeming it as „ridiculous FUD“.
CryptoQuant CEO Reacts
CryptoQuant CEO Ki Young Ji said Binance processes billions in deposits and withdrawals daily and included exchange reserve charts for Bitcoin and Ethereum which showed a downtrend for Ethereum reserves whereas Bitcoin balance is trending up culminating in a sharp uptick this week following legal proceedings between CFTC and Bince . He called The Wall Street Journal article „ridiculous FUD“.
Conclusion
Bince has experienced an increase in withdrawals due to recent regulatory actions with many users experiencing difficulties off-ramping whilst others deem any suggestion of mass withdrawals as mere speculation or ‚FUD‘.
