Tuan Duc (HCMC) decided to transfer all tokens to cold wallets when he saw that Binance was sued and more than 722 million USD was withdrawn from the exchange in the past 24 hours.
Tuan Duc, an office worker in District 1, said that on the night of March 27, when it was reported that the US Commodity Futures Trading Commission (CFTC) sued Binance, he and his friends decided to withdraw all tokens to their wallets. cold. “We only leave a few Stablecoin to trade when the market fluctuates, and all Bitcoin and Ethereum are withdrawn from the exchange in case the worst case happens - Binance can follow in the footsteps of FTX.” Tuan Duc said.
Germany is just one of hundreds of thousands of people looking to flee Binance as bad news engulfs the exchange. Data from Dune Analytics shows that within the first two hours of the news that the CFTC sued Binnace, investors withdrew $169 million from the exchange. Meanwhile, only 46 million USD was sent up. Net withdrawal - the difference between the value of assets withdrawn and deposited - about 123 million USD. Within 24 hours, more than 958 million USD was transferred from Binance, total net withdrawal amounted to 722 million USD, as of 10:45 am on March 28.
Meanwhile, data from Nansen shows that the total amount of cryptocurrency Binance is holding is worth $63.7 billion. In the past week, $2 billion was net withdrawn from the world's largest cryptocurrency exchange. The smart money trading team - usually experienced investors - also withdrew 10 million USD from the exchange in the last 24 hours.
On March 27, Paxos, the former Stablecoin issuer of Binance, burned over $155 million worth of BUSD, or 2% of the circulating supply. According to Coindesk , this is a signal that investors are fleeing the exchange.
According to experts, the move to withdraw money from the exchange and bring tokens to cold wallets shows the caution of the community in the context of legal risks with Binance that may escalate. CEO Changpeng Zhao (CZ) spoke to reassure users right after the news that CFTC had sued and had not taken action to close the transaction, but did not prevent a large number of users from withdrawing.
CZ and Binance are being accused by the CFTC of a series of violations, including helping US users "cross the line" (authentication), not meeting their legal obligations, and violating anti-money laundering laws. In response, CZ said he was "surprised and disappointed" to hear the news because Binance has cooperated with the investigation with CFTC for the past 2 years and the exchange also has full technological measures to KYC users and always comply properly. provisions of the law.
This is not the first time users have massively withdrawn from Binance. The last time was exactly two weeks ago when the New York Department of Financial Services (NYDFS) asked Paxos to stop issuing BUSD. At that time, $2.8 billion was withdrawn from the exchange in 24 hours, but the deposit in the same period was nearly two billion USD.
On December 13, Binance's net outflow reached $902 million in 24 hours. The data recorded at that time showed that the net withdrawals surpassed all other centralized exchanges and was almost nine times larger than that of the exchange holding the second place. After the bankruptcy of FTX, this is considered the second largest withdrawal in the crypto market, and the most in Binance history, since its inception.
Binance, the world's largest cryptocurrency exchange, was founded in 2017 by billionaire Changpeng Zhao. From 2019, Binance stopped providing services to US users in accordance with the laws of this country. Operations are transferred to Binance.US. The platform is said to operate independently of Binance with a stricter policy. In 2021, Binance begins to be targeted by the CFTC.
The fate of Binance is currently unknown. The CFTC believes that Bitcoin, Ethereum, and Litecoin are commodities, so it is illegal to not fully register with the agency. Meanwhile, another investigation by the US Securities and Exchange Commission (SEC) is looking to prove that every cryptocurrency (except Bitcoin) is a security. These two opposing views could be an opportunity for Binance to counter that the CFTC's argument in the lawsuit is unclear and uncertain.
Khuong Nha/ Vnexpress
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