On-Chain Data Shows Withdrawals Worth $623 Million From Binance

The world’s largest cryptocurrency exchange Binance witnessed negative $623 million in netflow on 5th June after US SEC filed a fresh lawsuit, on-chain data revealed.

The crypto exchange saw withdrawal levels not seen since the banking crisis in March this year. However, these figures remain within historical normal levels. Binance has witnessed as much as $1 billion in negative netflows in the same period amid various FUDs and bank run rumors.

Blockchain analysis firm Nansen reported that netflow to Binance turned positive this morning on ethereum. As the exchange witnessed around $75 million positive netflow within a few hours.

BNB down 8% since SEC lawsuit

At the time of writing, Binance’s native token BNB is trading at $277, down nearly 8% in the last 24 hrs, as per CoinMarketCap data. Bitcoin and Ethereum are also down nearly 4% and 3%, respectively.

Binance’s crypto wallets currently hold $55 billion worth of cryptocurrencies in its reserve wallets. The world’s largest crypto exchange has been under heavy scrutiny from the US regulators recently. Along with this SEC lawsuit, Binance is also facing investigations from the US DoJ, US CFTC and even the IRS.

The SEC has filed 13 charges against the crypto exchange’s entities and their founder Changpeng Zhao for operating unregistered exchanges and misrepresenting trading controls and oversight on the Binance.US platform.

Binance exec secretly controlled Binance.US’s finances.

As reported earlier, a senior Binance executive operated five bank accounts that belonged to the exchange’s independent U.S. affiliate. One of the bank accounts even held American customers’ funds, bank records show, Reuters revealed yesterday. A day after the Reuter’s report, the SEC filed a lawsuit against the crypto exchange’s entities on the same charges.  The investigation found that the now defunct Silvergate bank allowed Guangying Chen, a close associate of Changpeng Zhao, to control the accounts between 2019 and 2020, according to records from those years.

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Jai Pratap is a Crypto and Blockchain enthusiast with over three years of working experience with different major media houses. His current role at CoinGape includes creating high-impact web stories, cover breaking news, and write editorials. When not working, you’ll find him reading Russian literature or watching some Swedish movie.

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