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Binance recorded withdrawals of Bitcoin and stablecoins, amounting to $1.45 billion over the last 68 hours. This marks another large Binance withdrawal after the banking crisis in March.
Binance Records Major Withdrawals Amid SEC Lawsuit
Amidst the ongoing legal battle between Binance and the U.S. SEC, in which the SEC has requested the freezing of Binance’s assets, the exchange has experienced significant outflows. This situation has caused concern among investors and users of the platform, as they seek to protect their assets and minimize their exposure to potential risks.
As of June 6, at 9 p.m. ET, Binance had an impressive $10.30 billion in 24-hour trade volume globally. A considerable portion of this trading volume is attributed to the BTC/USDT and BTC/TUSD trading pairs (data compiled by Coingecko.com).
Data from cryptoquant.com also reveals that there has been a substantial outflow of BTC, ETH, and stablecoins from the Binance platform. The outflow started approximately 68 hours ago, on June 3, 2023, draining Binance reserves.
Binance Records Major Withdrawals of Over $1.45 Billion in Bitcoin, Ethereum, and Stablecoins
Cryptoquant’s metrics reveal that Binance held 615,045 bitcoins (BTC) in reserves on that day. However, the current count has decreased significantly to 599,607 BTC, showing a loss of approximately 15,438 BTC. Based on the current BTC exchange rate, this loss exceeds $420 million. A significant amount by any measure.
Despite statistically significant outflows, the balance of #Bitcoin held across Binance exchange addresses remains robust at 694K BTC, just -10.5K BTC shy off of its ATH of 704.5K BTC.
Thus, we can conclude the recent flurry of outflows has only marginally affected the balance… pic.twitter.com/OMAcT1mYTm
— glassnode (@glassnode) June 6, 2023
Binance reportedly holds about 4.441 million ether in its reserves. However, recent data show that around 157,218 ETH have been withdrawn from the exchange. This results in a remaining reserve balance of 4.28 million ETH.
Although the value of the transferred ether amounts to a substantial $296 million based on current exchange rates, the outflow of stablecoin assets has had an even more significant impact in terms of value. Based on Cryptoquant’s data, stablecoins worth $742.47 million have been withdrawn from the exchange since June 3.
The combined value of assets withdrawn from Binance since Saturday comprises $420 million in BTC, $296 million in Ether, and $742 million in stablecoin assets totaling $1.45 billion. Making it one of Binance’s major withdrawals in 2023.
The ‘Binance Cold Wallet’ is the largest Bitcoin wallet in terms of bitcoins held, currently 248,597 BTC. Despite much of 2023 seeing Binance’s cold wallet balance remains steady, a transaction on January 7 involved the transfer of 2,000 BTC.
Rush of Withdrawals From Binance
These Binance major withdrawal increase results from recent legal action taken by the U.S. Securities and Exchange Commission (SEC) against Binance. The SEC has filed a lawsuit in U.S. District Court, alleging that Binance and its CEO, Changpeng Zhao (also known as CZ), engaged in deceptive practices.
Additionally, the SEC accuses Binance of operating an unregistered trading platform in the United States. The platform allows U.S. customers to trade cryptocurrencies on an exchange not allowed for U.S. investors. The allegations include providing false information to investors about the exchange’s ability to detect market manipulation.
Binance recording these major withdrawals is significant, as it will provide insights into the regulatory landscape surrounding cryptocurrencies. It will address questions regarding their classification as securities and cryptocurrency exchange submission requirements. The outcome of this lawsuit could have implications for Binance’s operations and potentially impact the broader cryptocurrency industry.
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