News that the United States Securities and Exchange Commission sued Binance over multiple alleged violations of the country's securities laws rocked the blockchain and crypto industry yesterday — but some large players appear to have taken the opportunity to buy the dip.

Firstly, on-chain data shared by Lookonchain suggests that specialized crypto trading and market making firm Cumberland withdrew 67.9 million USDC from the stablecoin's issuer, Circle, and deposited 67.1 million USDC to crypto exchange Coinbase. That's an indication that the firm might be gearing up to deploy into the market. 

Institutional crypto trading platform FalconX also appears to have received 37 million USDC from Circle before depositing 29.5 million USDC to Binance.

Meanwhile, blockchain investment firm FBG Capital appears to have deposited 44 million USDT to Binance following the initial reports that the SEC is suing Binance.

Furthermore, a historically successful trader identified by Lookonchain appears to have deposited 15.9 million USDT into Binance before withdrawing 8,800 ether — creating an average buy price of roughly $1,808.

Finally, a crypto whale — also identified by Lookonchain — appears to have withdrawn 703,871 USDC and more than 2.5 million USDT from decentralized finance platform Aave before buying some $3.35 million in ether at an average price of $1,810.

The price of ETH is down 4.22% over the past week. Source: TradingView

Crypto volatility remains low

In related news, the crypto market's period of low volatility remained largely unaffected by yesterday's news of Binance's impending legal battle against the SEC.

Though crypto prices fell across the board, volatility remains low and implied options volatility compressed — signaling a belief that market volatility will remain low.

With seasonality also potentially playing a part — summers are historically flat and not volatile — such a belief may be even more pervasive. "Traders are already positioned," LedgerPrime's Laura Vidiella told The Block earlier Tuesday.