Binance Loses 3,400 BTC Within 24 Hours of CFTC Lawsuit as Investors Move Assets to Other Exchanges
After the CFTC filed a lawsuit against Binance and its CEO, CZ, for alleged regulatory violations, investors started withdrawing Bitcoin from the exchange, fearing market fluctuations. In response to the lawsuit, CZ denied the allegations of market manipulation, but this did not prevent the withdrawals. Within 24 hours of the announcement, Binance lost over 3,400 BTC, out of a total of 3,900 BTC lost in the past week.
This caused Binance’s Bitcoin balance to decrease while other exchanges, including Coinbase, Bitfinex, and Gemini, experienced an increase in their BTC reserves. It is worth noting that Bitcoin balances on major crypto exchanges have been declining since March 20, with nearly 27,000 BTC leaving the exchanges in the past seven days. Additionally, a federal judge temporarily halted a proposed deal between Voyager and Binance.US, pending a decision on the Department of Justice’s appeal against the bankruptcy plan.