Binance Experiences Massive Withdrawals Amid CFTC Crackdown

Once the Commodities Futures Trading Commission (CFTC) made the company’s legal status in the United States more problematic, Binance saw significant withdrawals of funds.

According to information provided by DeFi Llama, customers of Binance withdrew more than $648 million from the exchange in the preceding twenty-four hours. This was a significant increase taking into consideration that withdrawals throughout the course of the previous week reached more than $1 billion.

The total value of Binance’s assets has now surpassed $73.5 billion. It is estimated that clean assets, which do not include tokens created by themselves, are valued at around $54.71 billion.

Binance.US records inflows despite CFTC crackdown

As a noteworthy development, Binance US has seen deposits come in over the past 24 hours despite the worsening legal scenario facing the firm. Its incoming funds increased by $2 million, bringing the total to $324 million. OKX, Huobi, and Bybit were among the other exchanges that saw incoming funds during this time period.

By providing these services without first registering with the CFTC, the CFTC believes that Binance has breached the derivatives laws that are in place in the United States. The result of this litigation is expected to have a significant impact on the future of the cryptocurrency business, according to analysts.

Today the CFTC charged Binance and its founder, Changpeng Zhao, with willful evasion of federal law and operating an illegal digital asset derivatives exchange. Learn more: https://t.co/DdczFgvW6A

— CFTC (@CFTC) March 27, 2023

Investor panic sees BTC withdrawals surge

Additionally, investors reacted to the news by withdrawing more than 3,600 Bitcoin from Binance within twenty-four hours of the release. They did this in anticipation of changes in the market.

The Bitcoin balance on Binance has dropped by more than 4,100 BTC in the previous week; of this total, 3,600 BTC have been withdrawn in the space of only the past 24 hours alone.

From March 20th, it is essential to take notice of the fact that Bitcoin holdings on cryptocurrency exchanges have decreased. During the course of the last week, almost 27,000 Bitcoin have been removed from key exchanges.

Binance responds to CFTC’s accusations

Binance has issued a statement in which it expresses its displeasure with the newly filed case. The company argues that it has made considerable expenditures to guarantee that it does not have any US users on its primary platform.

My Response to the CFTC Complaint | Binance Blog https://t.co/TadyotM7HN

— CZ Binance (@cz_binance) March 27, 2023

It is quite possible that more legal action will be taken against Binance by other US regulatory bodies, such as the Securities and Exchange Commission (SEC) and the Internal Revenue Service (IRS), all of which are now conducting separate investigations into the firm. The price of BNB currently trading around $309.4.