Binance US users withdraw $78M amid SEC lawsuit and asset freeze concerns Binance US users withdraw $78M amid SEC lawsuit and asset freeze concerns
Blockchain data shows that Binance US users withdrawal rate increased after SEC moved to freeze the exhange assets.
2 min read
Updated: Jun. 7, 2023 at 12:39 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Crypto traders using Binance US withdrew $78.48 million on June 7 from the embattled platform, according to DeFillama data, despite assurances that their funds were safe.
The total value of tokens held by Binance.US on the Ethereum chain is reportedly $321 million indicating the outflows amounted to around 24% of the current TVL.
The data from DeFillama showed that Binance US had recorded outflows of $506,850 on June 5, the day it was sued by the U.S. Securities and Exchange Commission (SEC) for violating federal securities law and placing investors at risk.
The withdrawal trend continued to June 6, when it saw $7.941 million in outflows. However, outflows from the platform increased by nearly 10x to $78.48 million after reports emerged that the SEC sought a restraining order to freeze the assets of Binance.US’s parent company, BAM.
Additionally, the regulator wants Binance.US to return customers’ funds and crypto assets on its platform.
Blockchain analytical firm Nansen corroborated the outflows report in a June 7 tweet. According to the firm, Binance US recorded $64.5 million in net outflow within an hour. This withdrawal was heavily influenced by two large Polygon’s MATIC withdrawals worth about $62 million.
Binance US insists funds are safe.
In a June 6 statement, Binance US maintained that it remained fully operational and its withdrawals and deposits were functioning optimally despite the SEC’s move to freeze its assets.
Binance US described the SEC’s preliminary injunction as “unwarranted,” adding that it was borne out of the Commission’s desire to obtain an “advantage in litigation versus genuine concern about the safety of customer assets.”
The US-based platform added that SEC filed the injunction despite assuring the Commission its users’ funds were safe. Binance US said:
“Until recently – despite years of engagement – the SEC Staff has not expressed a concern about the safety of customer assets. And through near around-the-clock dialogue over the past week, company’s counsel addressed SEC Staff’s concerns regarding the safety of customer assets.”
Meanwhile, the platform reiterated that it would defend itself in court.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Binance.US
Binance.US will provide secure and reliable cryptocurrency trading to users in the United States.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.