Binance sees increase in withdrawals after CFTC sues the exchange

Quick Take

  • Binance saw an increase in withdrawals following the CFTC’s lawsuit against the exchange.
  • The suit alleged that Binance violated federal laws and didn’t register the exchange in the U.S.

Binance saw an increase in withdrawals after the Commodities Futures Trading Commission sued the crypto exchange for allegedly violating federal laws and failing to register in the U.S.

Since the lawsuit was announced, $169 million was withdrawn from the exchange against just $46 million of deposits, a net outflow of $123 million.

Crypto data provider Nansen shows that Binance holds $63.7 billion worth of cryptocurrencies. The data is based on a list of wallets that the exchange released publicly, in order to show transparency into its holdings.


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This graph shows Binance inflows and outflows since 13:00 UTC. The lawsuit was released at 14:57 UTC. Image: Dune Analytics (via The Block Research/21 Shares).

The lawsuit claimed that Binance, the world's largest cryptocurrency exchange, still served U.S. customers and tried to increase its presence in the region, despite public assertions that it was not available to U.S. customers. It claims that Binance executives replaced data referring to U.S. customers with the word "UNKWN," short for unknown.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Tim is the Editor-In-Chief of The Block. Prior to joining The Block, Tim was a news editor at Decrypt. He has earned a bachelor's degree in philosophy from the University of York and studied news journalism at Press Association Training. Follow him on X @Timccopeland.


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