1. BITBILIHome
  2. Article

SEC lawsuits cause $4 billion exodus from affected exchanges

• 257 views

TL;DR Breakdown

  • The SEC lawsuits against Binance and Coinbase have led to more than $4 billion in outflow.
  • Exchanges continue to process withdrawals despite looming issues.

U.S. Securities and Exchange Commission (SEC) lawsuits against cryptocurrency exchanges Binance, Binance.US, and Coinbase have triggered a significant outflow of approximately $4 billion in deposits, as reported by blockchain data.

SEC lawsuit causes $4 billion in outflows

Data from blockchain analytics firms Nansen and Glassnode reveal that between Monday and Thursday, the three exchanges collectively experienced a net outflow of $3.1 billion through the Ethereum network, along with an additional $864 million in bitcoin (BTC). Net outflow indicates that the withdrawals surpassed incoming deposits.

Despite the regulatory challenges, the withdrawals were processed in an orderly manner by the exchanges throughout the week. The SEC initially filed a lawsuit on Monday against Binance, its U.S.-based counterpart Binance.US, and CEO Changpeng “CZ” Zhao, citing violations of federal securities laws. Subsequently, on Tuesday, the agency sued Coinbase for allegedly offering unregistered securities to the public.

These actions created a sense of unease in the cryptocurrency market, leading to a significant decline in the value of tokens that the SEC identified as securities in the lawsuits. Notably, Binance’s BNB, Cardano’s ADA, and Polygon’s MATIC experienced the most pronounced drops during the week. As the SEC sought to freeze assets on Binance.US, BTC, and ETH traded at a notable premium on the platform compared to others, resulting in traders and market makers retreating from the exchange.

Affected exchanges continue to process withdrawals despite looming issues

Concerned by the regulatory crackdown, crypto traders swiftly withdrew their funds from the targeted exchanges. Nansen data indicates that Binance, the world’s largest crypto exchange by trading volume, witnessed a net outflow of $2 billion on the Ethereum blockchain within four days. This figure includes ETH and all Ethereum-based tokens. Glassnode’s data reveals that BTC withdrawals surpassed deposits by approximately $838 million (equivalent to 31,868 BTC) during the same period.

On Wednesday, the exchange experienced a significant net outflow of 13,953 BTC, marking the largest daily drawdown since December, when investor confidence was shaken by a flawed reserve report and the collapse of a rival exchange, FTX.

While the outflows observed this week were substantial, they represent only around 5% of all assets held on the Binance exchange, according to Binance’s crypto wallets. Coinbase, on the other hand, endured a net outflow of $1 billion via the Ethereum network from Monday to Thursday, as reported by Nansen. Glassnode’s data shows that BTC outflows from Coinbase totaled $25 million.

Meanwhile, Binance.US witnessed net outflows of $75 million on the Ethereum network, according to Nansen. Glassnode does not track this particular platform. In response to the SEC’s “extremely aggressive and intimidating tactics,” Coinbase advised its users to withdraw USD deposits as soon as possible. The exchange temporarily suspended U.S. dollar deposits and will soon delist USD trading pairs, transitioning to a crypto-only exchange.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:SEC lawsuits cause $4 billion exodus from affected exchanges

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年6月13日 15:42
Next 2023年6月13日 17:51

Related articles

  • TON network announces its new encrypted messaging feature

    TL;DR Breakdown TON Network has announced the release of a new encrypted messaging feature within its network. The foundation wants to drive growth with the new feature. Description The TON network, developed by the TON Foundation, recently unveiled a new on-chain encrypted messaging feature, allowing users to send private messages within the network. TON, which originated from code created by the Telegram instant messaging app team, was forked and open-sourced after Telegram abandoned the project in July 2020 before its mainnet launch. TON … Read more The TON network, developed by the TON Foundation, recently unveiled a new on-chain encrypted messaging feature, allowing users to send private messages within the network. TON, which originated from code created by the Telegram instant messaging app team, was forked and open-sourced after Telegram abandoned the project in July 2020 before its mainnet launch. TON network rolls out a new encrypted feature on the network The TON Foundation has since taken charge of building the current TON network, which is designed to provide greater scalability and transaction throughput while maintaining decentralization within the Web3…

    Article 2023年7月6日

  • Bitcoin NFT Launch Sparks Chaos: Crypto Critic Peter Schiff’s Twitter Account Hacked

    TL;DR Breakdown Peter Schiff’s Twitter account was hacked, leading to the promotion of a fraudulent gold coin scam. The hacker’s actions contradicted Schiff’s criticisms of cryptocurrencies, as they announced the launch of a token aiming to bridge the gap between physical and digital currency. In a surprising turn of events, Peter Schiff, a well-known gold proponent and critic of cryptocurrencies, recently fell victim to a hack on his Twitter account. The incident occurred just days after Schiff had announced the launch of his own NFT collection on Bitcoin Ordinals, which had already raised eyebrows within the crypto community. This article delves into the details of the hack, the subsequent fake gold coin scam, Schiff’s stance on cryptocurrencies, and the implications of his recent foray into the world of NFTs. Contents hide 1 Peter Schiff’s Twitter Account Compromised in Apparent Hack 2 Hacker Announces Fake Gold Coin Scam, Contrary to Schiff’s Beliefs 3 Schiff’s NFT Launch and His Ongoing Criticism of Bitcoin 4 Conclusion Peter Schiff’s Twitter Account Compromised in Apparent Hack Peter Schiff’s Twitter account became the target of a…

    Article 2023年6月7日

  • Cryptocurrency lender Celsius’s bankruptcy plan faces creditor pushback

    TL;DR Breakdown   Celsius has made progress in relaunching operations by submitting an amended bankruptcy plan. The Fahrenheit consortium has won the bidding for Celsius’ assets. Creditor pushback is expected, with concerns raised over potential violations of consumer lending laws. Unexpectedly, cryptocurrency lender Celsius has made a significant stride forward in its efforts to relaunch operations by submitting an amended bankruptcy plan. Several high-profile investors, including Arrington Capital and US Bitcoin Corp., formed the Fahrenheit consortium and ultimately won the bidding for Celsius’ assets, reflected in the proposed strategy. With this result, NovaWulf could not take control of the corporation and its $2 billion in assets. The bankruptcy plan, submitted to the New York bankruptcy court in the early hours of Thursday, now awaits approval. However, creditor pushback seems inevitable, as some are already raising concerns. David Adler, a representative of borrowers from the McCarter & English law firm, took to Twitter to express his opposition to the proposed treatment outlined in the plan. Under the Plan, the Debtors have elected to treat the Retail Borrow Claims through the Set…

    Article 2023年6月18日

  • SPACE ID price analysis: Bullish momentum resurfaces, propelling the ID price to $0.474

    TL;DR Breakdown SPACE ID price analysis shows bullish momentum. Resistance for ID is present at the $0.508 level. Support is still maintained at the $0.442 level. The recent SPACE ID price analysis demonstrates a renewed upward movement as bullish momentum gains strength over the last few hours. The bulls are actively working towards recovery and have successfully pushed the price to $0.474 after persistent efforts. In the preceding days, the cryptocurrency’s value experienced unfavorable conditions with a downward trend line persisting over the course of a week. Notably, the coin experienced its highest loss in value on May 24, 2023. However, today the coin found support and initiated a recovery phase. ID/USD 1-day price chart: $0.480 is the next key resistance level that ID is expected to face The 1-day SPACE ID price analysis confirms a resurgence in the market, with the price experiencing a notable increase. The bulls have made a successful recovery, pushing the price to reach the $0.474 mark. Over the past week, the coin’s value has faced a consistent decline, resulting in a loss of 3.10…

    Article 2023年5月28日

  • Citi unveils blockchain-based token services to revolutionize institutional finance

    TL;DR Breakdown Citi Treasury and Trade Solutions has launched Citi Token Services, a blockchain-based platform aimed at revolutionizing cash management and trade finance for institutional clients. The service enables instant payments and 24/7 liquidity transfers, significantly reducing transaction times and operational friction. The platform is part of Citi’s broader strategy to integrate digital technologies into existing financial systems, complementing its work on the Regulated Liability Network for interoperable digital asset solutions. Description Citi Treasury and Trade Solutions (TTS) has announced the launch of Citi Token Services, a blockchain-based platform designed to enhance cash management and trade finance for institutional clients. The new service leverages blockchain technology and smart contracts to integrate tokenized deposits into Citi’s global network, offering a more efficient alternative to traditional bank guarantees and … Read more Citi Treasury and Trade Solutions (TTS) has announced the launch of Citi Token Services, a blockchain-based platform designed to enhance cash management and trade finance for institutional clients. The new service leverages blockchain technology and smart contracts to integrate tokenized deposits into Citi’s global network, offering a more efficient alternative…

    Article 2023年9月20日
TOP