March 29, 2023

Binance Witnessed Withdrawals Worth over $850 Mln before, after CFTC Indictment



Before bringing accusations against Binance and its CEO Changpeng Zhao, which were made by the United States Commodity Futures Trading Commission (CFTC), funds were withdrawn from Binance.

Thanefield Capital data research said that a few hours before CFTC’s indictment against Binance, Binance wallets witnessed an outflow of $850 million. This sum of money is a part of larger withdrawals that happened on March 27 worth almost $1.5 billion from platforms, including Binance, Coinbase, Kraken, and Bitfinex.

After the announcement of the CFTC indictment, Binance saw additional withdrawals worth $240 million. However, according to Cointelegraph, Binance still has $63.36 billion worth of cryptocurrency assets, including over $2 billion of Tether, $17 billion of Bitcoin,
and $8.1 billion worth of Ether.

Earlier on Tuesday, Zhao denounced allegations made by the Commodity Futures Trading Commission (CFTC) of the United States, rejecting its recent remarks about Binance’s manipulation of the market overall.

In a statement published by the Binance website, Zhao described such claims as incomplete recitation of facts. Zhao stressed that his crypto exchange does not trade for profit or “manipulate” the market under any circumstances but “trades” in a number of situations, saying Binance’s revenues are in crypto. He referred to the need to convert some cryptocurrencies from time to time to cover expenses in fiat or other cryptocurrencies.

The US financial regulator has accused Binance and its CEO of illegally operating the country in a lawsuit that seeks fines and an injunction against the world’s prominent crypto trading exchange. It also accused him of ignoring the US laws regarding the registration and regulatory requirements, saying it does extensive solicitation of and access to US customers.

Binance responded and noted that Binance is committed to transparency and cooperation with regulators and law enforcement (LE) in the US and globally.

The CFTC accused Binance and its CEO of insider trading, an accusation which was refuted by Zhao. He said that Binance has a 90-day no-day-trading rule for employees which prevents any employees from actively trading in addition to preventing them from any future trading.

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