CFTC Lawsuit Results In A US$627 Million Outflow Of Ethereum From Binance

In the 24 hours up until Tuesday morning, the blockchain analytics platform Nansen reported that Binance received about US$627 million in Ethereum-related withdrawals. Following a lawsuit filed by the Commission on Monday against the world's largest cryptocurrency exchange, the commission has now sued the exchange for alleged derivatives violations.

‍

A few quick facts about

‍

• As of Wednesday morning, the Nansen data had Binance holding approximately US$64 billion in publicly disclosed wallets, which is about 9% of their total assets.

‍

• There were US$2.1 billion of Ether and Ethereum-related assets invested on Binance in the seven days through Tuesday morning, according to the data from the exchange.

‍

• According to Nansen data, however, withdrawals on the exchange are significantly lower than they were in December, when the exchange had experienced a surge of outflows of up to US$3 billion after the collapse of the FTX exchange amid allegations of fraud. According to CryptoQuant data published on December 13, Binance’s stablecoin outflows reached a record high, reaching $5.78 billion on Dec. 13.

‍

• A CryptoQuant study indicates that Binance's stablecoin outflows on Monday and Tuesday reached US$1 billion and US$810.8 million, respectively. Following a temporary loss of the peg between the USDC stablecoin and the U.S. dollar on March 11 and 12, the withdrawals reached a new high for the year at US$2.56 billion on March 13 as a result.

‍

• As a result of the New York Department of Financial Services ordering Paxos not to issue Binance USD (BUSD) stablecoin, Binance saw US$2.3 billion of outflows in stablecoins on Feb. 13.

‍

• Binance and its CEO Changpeng Zhao were the target of a civil lawsuit by the Commodity Futures Trading Commission on Monday, alleging they violated derivatives rules by permitting U.S. residents to trade various financial instruments involving digital assets without being licensed.

‍

• CFTC complaint, Zhao said in a blog post on Tuesday that it contains an incomplete recitation of facts, and he rejected allegations of wrongdoing by his company.