Binance and its U.S. affiliate, Binance.US, experienced significant net outflows of $790 million in the past 24 hours, according to data firm Nansen. This comes shortly after both exchanges were sued by a prominent U.S. regulator. Nansen reported that Binance saw $778.6 million in net outflows of crypto tokens on the ethereum blockchain, while Binance.US recorded net outflows of $13 million. Neither exchange has responded to requests for comment.
The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance, its CEO Changpeng Zhao, and the operator of Binance.US, alleging a deliberate attempt to circumvent U.S. regulations through deceptive practices. The SEC’s 13 charges included claims of artificially inflating trading volumes, diverting customer funds, failing to restrict U.S. customers, and misleading investors regarding market surveillance controls. The SEC’s lawsuit represents a significant move in its ongoing crackdown on the cryptocurrency industry.
Binance has stated that it has been cooperating with the SEC’s investigations and has made efforts to address their concerns, including seeking a negotiated settlement. The company expressed its intention to vigorously defend its platform in a blog post.
Following the news, Bitcoin experienced a slight recovery after a significant 5% drop the previous day, which marked its largest daily decline since April 19. Bitcoin’s value stood at $25,723, showing little change but remaining close to a two-month low. The SEC’s lawsuit against Binance has been seen as another setback for the cryptocurrency industry and exchanges globally. Binance’s BNB cryptocurrency, the fourth-largest in the world, also experienced a decline, falling 0.3% to a nearly three-month low of $277 after a 9.2% drop on the previous day, its largest daily decline since November.
The SEC’s complaint adds to Binance’s legal challenges, as the company was previously sued by the U.S. Commodity Futures Trading Commission (CFTC) in March for allegedly operating an “illegal” exchange and having a “sham” compliance program. Binance’s CEO, Changpeng Zhao, refuted the CFTC’s claims, describing them as an incomplete representation of the facts.
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