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Binance Depositors Flee Following CFTC Charges, On-Chain Data Shows
Crypto users have withdrawn roughly $400 million on Ethereum from Binance in the past 24 hours, while Paxos, issuer of the Binance USD, has burned more than $155 million BUSD in the past four hours.
Updated May 9, 2023, 4:11 a.m. Published Mar 27, 2023, 6:50 p.m.
Binance users withdrew large sums of crypto from the exchange Monday following news that U.S. regulators had sued Binance and its founder Changpeng Zhao.
In the last 24 hours, Binance has seen a net outflow of $400 million on Ethereum, according to blockchain analytics firm Nansen. This compares to a net outflow of $2 billion over the past seven days. Savvy traders who Nansen considers “smart money” operators have also removed $9 million over the last 24 hours from Binance as of presstime.
The on-chain movements highlight crypto trader skittishness in an uncertain regulatory environment. Although Binance has not made moves to close its doors, even the prospect of something going amiss at the world’s largest crypto exchange by volume appears to be causing depositors to flee.
Additionally, Paxos, a former issuer of the Binance USD (BUSD) stablecoin, on Monday burned more than $155 million of BUSD (2% of the circulating supply) in the past four hours, another example of investor flight.
Read more: CFTC Sues Binance, CZ Over 'Willful Evasion' of U.S. Laws, Unregistered Crypto Derivatives Products
Sage D. Young
Sage D. Young was a tech protocol reporter at CoinDesk. He cares for the Solarpunk Movement and is a recent graduate from Claremont McKenna College, who dual-majored in Economics and Philosophy with a Sequence in Data Science. He owns a few NFTs, gold and silver, as well as BTC, ETH, LINK, AAVE, ARB, PEOPLE, DOGE, OS, and HTR.
