Investors Pull $1.6-Billion From Binance After US Lawsuit

 Investors withdrew US$1.6-billion of cryptocurrency from Binance since it was sued by the US Commodity Futures Trading Commission (CFTC) on Monday, blockchain data tracker Nansen said on Wednesday.

The CFTC sued Binance, the world’s biggest crypto exchange, along with its CEO and former top compliance executive, alleging that they were operating an “illegal” exchange and a “sham” compliance programme.

Changpeng Zhao, CEO of Binance
Changpeng Zhao, CEO of Binance

Since the lawsuit, Binance has seen $1.6-billion of overall withdrawals and $852-million in the last 24 hours, Nansen said, in a step up from the average of $385-million/day over the last two weeks.

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Martin Lee, research analyst at Nansen, said that the outflows were higher than usual, but still not as high as 13 December, when investors pulled $3-billion from Binance as they grew nervous about the status of Binance’s reserves.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry