Investors have withdrawn 790 million from Binance in the last
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Investors have withdrawn $790 million from Binance in the last 24 hours

Nansen said investors have withdrawn around $790 million from cryptocurrency exchange Binance and its US subsidiary in the past 24 hours. This came the day after the US Securities and Exchange Commission filed a lawsuit against both companies. Binance saw a net outflow of $778.6 million in crypto tokens on the Ethereum blockchain, and Binance.US saw a net outflow of another $13 million.

    Image source: unsplash.com

Image source: unsplash.com

The SEC on Monday sued Binance, its CEO Changpeng Zhao and operator Binance.US “Webs of Deception” to circumvent US law. The SEC issued a total of 13 charges, including artificially increasing trading volume, diverting client funds, misleading investors about market controls, and a host of others. The lawsuit marks the most significant move by the SEC in its sweeping crackdown on the cryptocurrency industry this year.

“This is another blow to the crypto industry and crypto exchanges around the world”, – Tony Sycamore, market analyst at IG Markets, commented on the SEC lawsuit. In statements Monday, Binance said it is cooperating with the SEC and “worked hard to answer their questions and solve their problems”including attempting to reach a negotiated settlement. “We want to vigorously defend our platform”said a spokesman for the company.

Bitcoin has stabilized after falling more than 5% yesterday, marking the cryptocurrency’s worst daily drop since April 19. The world’s largest cryptocurrency traded at $25,723 and remained unchanged throughout the day. Branded cryptocurrency Binance BNB, the world’s fourth-largest cryptocurrency, fell 0.3% to a nearly three-month low of $277 after falling 9.2% earlier Monday, its sharpest since November.

The SEC lawsuit is the latest in a series of legal issues for Binance. In March, the US Commodity Futures Trading Commission (CFTC) sued the company for alleged exploitation “illegal” exchange and “fictitious” compliance program. The regulator accused the crypto exchange of facilitating illegal activities and trade manipulation. Zhao claims the CFTC’s claims have been met “incomplete statement of facts”.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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