Outflows on leading cryptocurrency exchange Binance have hit the roof with customers withdrawing more than $2 billion in the last few days as pressure continues to mount. According to information from crypto data provider Nansen, Binance has up to $63.2 billion in the company’s publicly disclosed wallets out of which about $2.1 billion has been withdrawn by traders who are suspicious of the outcome of the plaguing problems.
As part of the huge outflow, $500 million worth of Binance USD (BUSD) has been pulled out of the exchange. Although this is a far cry from the $2 billion BUSD that was withdrawn during the New York Department of Financial Services (NYDFS) crackdown on Paxos a few weeks ago.
United States regulator, the Commodity Futures Trading Commission (CFTC) indicted Binance, its Chief Executive Officer (CEO) Changpeng ‘CZ’ Zhao, and another executive identified as Samuel Lim. Based on the filing, the exchange has been discovered to partake in unregistered commodity trading in the U.S. in addition to other illegal conducts and behaviors.
Binance Goes Under Regulators’ Radar
Earlier this month, during the bankruptcy proceedings of beleaguered crypto brokerage company Voyager Digital which Binance plans to acquire, a staff of the Securities and Exchange Commission (SEC) also accused the exchange of offering unregistered securities in the region.
William Uptegrove, the SEC attorney said “The staff believes – based solely on the facts and circumstances currently known to the staff – that the offering and sale of VGX tokens has the attributes of a securities transaction. The staff also believes that Binance.US is operating an unregistered securities exchange in the United States.”
In the CFTC class action, CZ was sued for intentionally concealing the location of the company’s executive offices which the independent US federal agency perceived as a strategy for avoiding regulation. All these and many more were allegations against the renowned digital assets service provider. Trader’s withdrawals on the Binance platform skyrocketed after the class action filed by CFTC.
Similarly, Binance spot trading shares dropped significantly just after it ended a zero-fee campaign for trading in Bitcoin (BTC) cryptocurrency pairs.
The shares sank from 65% a week earlier to about 58.8%. Riyad Carey, a research analyst at Kaiko said “It’s hard to overstate the significance of Binance’s zero-fee trading pairs.” However, when asked about the loss, Binance responded, “this is in line with expectations and not a concern.”
🔥JOIN THECONRISE.COM'S MONTHLY $1000 GIVEAWAY AND FEEL VALUED AS A READER! DON'T MISS OUT! 🔥
