SEC vs Binance Lawsuit Leads to Horrendous Outcomes in 24H

• Binance recorded a massive 24-H outflow of over $1 billion after the SEC sued it.
• A significant whale deposited 44M Tether (USDT) to Binance despite the lawsuit.

The SEC vs Binance lawsuit has begun to take its toll on the cryptocurrency market. Shockingly, on Monday, the market lost nearly $52.7 billion in just an hour after the announcement. In the last 24-hour window, the exchange’s withdrawals on Ethereum exceeded the deposits by $778.6 million, as reported by Nansen.

According to the on-chain data, traders withdrew nearly $1.65 billion from the exchange. The 24H deposits’ record, per contra, was $871.7 million. The net outflows move closer to attaining the maximum peak since Q1 2023. Previously in February, this largest exchange registered one of the huge net outflows during the Paxos BUSD lawsuit.

A series of price drops commenced over the day as 60 cryptocurrencies were tagged as securities. Several unwelcome consequences of this regulatory combat are making their way into the crypto landscape.

In the midst of increased outflows, one whale transaction involving the largest stablecoin Tether (USDT) captured the focus. It initiated an inflow of 44 million USDT to Binance after the filing. 

On Monday, during the midnight Greenwich hours, this whale scooped up 35 million USDT from Binance, 9 million USDT from OKX, and 5 million USDT from an anonymous wallet. These USDT holdings were bridged to the exchange, as per the data on etherscan.

Moreover, this move by FBG in contrast to the traders and investors earned the gratitude of Binance CEO CZ.

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