According to reports, following a legal action taken by the Commodity Futures Trading Commission (CFTC), investors withdrew up to $1.6 billion in cryptocurrency from Binance, the largest crypto exchange in the world.
The CEO and former top compliance executive of Binance, along with the crypto exchange itself, were sued by the US CFTC, which accused them of running an “illegal” exchange and having a “sham” compliance program.
Blockchain data tracker Nansen reported that Binance saw a total of $1.6 billion in withdrawals and $852 million in the past 24 hours following the CFTC lawsuit, which is a significant increase from the daily average of $385 million over the last two weeks.
While the outflows were higher than normal, Nansen research analyst Martin Lee noted that they were still lower than the $3 billion withdrawn on December 13, 2021, when investors became concerned about the status of Binance’s reserves.
Meanwhile, in a recent House Appropriations Committee hearing, the Chair of the Securities and Exchange Commission (SEC), Gary Gensler, emphasized the need for increased resources to tackle the rising problem of non-compliance in the cryptocurrency market.
