Binance-linked addresses plunge by over $1B following CFTC lawsuit
Following the CFTC news, DeFillama dashboard showed that Binance has processed 24 times more withdrawals than its closest rival.
On-chain data shows that addresses related to Binance are recording outflows following the lawsuit filed against it by the Commodity Futures Trading Commission (CFTC).
Crypto intelligence platform Arkham Intelligence dashboard showed that the value of the wallets connected to the crypto exchange decreased by $1.46 billion since the news broke.
According to the data, the withdrawals were populated by transactions from retail investors who were withdrawing their assets from the exchange.
Meanwhile, DeFillama’s centralized exchanges’ transparency dashboard showed that the exchange had processed $562 million in withdrawals in the last 24 hours — 24 times higher than the amount processed by its closest rival, Bitfinex.
Blockchain analytical firm Nansen shows that Binance holds $63.49 billion worth of cryptocurrencies.
Meanwhile, the flood of these withdrawals pales compared to those recorded in November 2022 when FTX collapsed. At the time, Binance processed over $6 billion in withdrawals over seven days.
More recently, the exchange processed nearly $1 billion in withdrawals following regulatory actions against its stablecoin product Binance USD (BUSD)
FUD on Binance rises
Several crypto community members fear the lawsuit might fatally affect Binance’s operation.
A partner at MetaCartel Ventures DAO, Adam Cochran, said the CFTC is “attempting to strike a fatal blow to Binance.” Cochran highlighted that the lawsuit could make “Binance liable for billions upon billions of dollars in fines.”
“[The] only semi-safe path for Binance here is likely a settlement in which CFTC would still push for the billions in make whole, disgorgement and civil penalty payments but may allow CZ et al to avoid admission of guilt.”
Following the news, Binance CEO Changpeng ‘CZ’ Zhao tweeted the number “4.” CZ has previously said the number means “FUD” (fear, uncertainty, and doubt).