Crypto giant Binance sees $1.6 billion in crypto withdrawals after CFTC lawsuit
Investors pulled as much as $1.6 billion in cryptocurrency from the world’s largest crypto exchange, Binance, after the platform was sued by a top US regulator, the Commodity Futures Trading Commission (CFTC).
Investors pulled as much as $1.6 billion in cryptocurrency from the world’s largest crypto exchange, Binance, after the platform was sued by a top US regulator, the Commodity Futures Trading Commission (CFTC).
The US CFTC sued the crypto giant along with its CEO and former top compliance officer, alleging they ran an “illegal” exchange and a “sham” compliance program.
The US CFTC sued the crypto giant along with its CEO and former top compliance officer, alleging they ran an “illegal” exchange and a “sham” compliance program.
Following the CFTC’s lawsuit, Binance witnessed $1.6 billion in total withdrawals and $852 million in the past 24 hours, according to blockchain data tracker Nansen, up from its average of $385 million per day over the past two weeks.
Following the CFTC’s lawsuit, Binance witnessed $1.6 billion in total withdrawals and $852 million in the past 24 hours, according to blockchain data tracker Nansen, up from its average of $385 million per day over the past two weeks.
Nansen Research analyst Martin Lee said payouts were higher than usual but still not as high as Dec. 13, when investors pulled $3 billion from Binance as they grew nervous about the status of Binance’s reserves.
Nansen Research analyst Martin Lee said payouts were higher than usual but still not as high as Dec. 13, when investors pulled $3 billion from Binance as they grew nervous about the status of Binance’s reserves.
“The crypto market capitalization is up 2.56% and currently stands at $1.16 trillion with BTC and ETH leading the charge. The CFTC has focused on Ethereum by showing its support for ETH as a commodity, resulting in a mini -rally of 3.92% in just 24 hours.BTC is marginally up 1.54% and is trading at $27,371.52 at time of writing.Investors are closely watching developments at Binance related to CFTC action,” said BuyUcoin- Chief Shivam Thakral.
“The crypto market capitalization is up 2.56% and currently stands at $1.16 trillion with BTC and ETH leading the charge. The CFTC has focused on Ethereum by showing its support for ETH as a commodity, resulting in a mini -rally of 3.92% in just 24 hours.BTC is marginally up 1.54% and is trading at $27,371.52 at time of writing.Investors are closely watching developments at Binance related to CFTC action,” said BuyUcoin- Chief Shivam Thakral.
“Unexpected and disappointing”
Binance called the CFTC’s lawsuit “unexpected and disappointing.” The crypto platform said it had been working with the regulator for more than two years, had strengthened its compliance staff and would continue to cooperate with authorities in the US and elsewhere.
“Unexpected and disappointing”
Binance called the CFTC’s lawsuit “unexpected and disappointing.” The crypto platform said it had been working with the regulator for more than two years, had strengthened its compliance staff and would continue to cooperate with authorities in the US and elsewhere.
According to the CFTC, an unidentified US firm used a subsidiary in the Cayman Islands to trade on Binance. Another traded on Binance by entering into a “service agreement” with an apparently unrelated entity organized under the laws of Jersey, a British dependency. A third began trading through a Singapore subsidiary, then switched to an entity incorporated in the Cayman Islands as well, according to the complaint filed in federal court on Monday.
According to the CFTC, an unidentified US firm used a subsidiary in the Cayman Islands to trade on Binance. Another traded on Binance by entering into a “service agreement” with an apparently unrelated entity organized under the laws of Jersey, a British dependency. A third began trading through a Singapore subsidiary, then switched to an entity incorporated in the Cayman Islands as well, according to the complaint filed in federal court on Monday.
Binance also instructed some U.S. customers to use virtual private networks, or VPNs, to hide their location, and instructed some “VIP customers” with significant U.S. ties to use shell companies, according to the CFTC. Those VIPs included trading firms based in the United States, the CFTC said.
Binance also instructed some U.S. customers to use virtual private networks, or VPNs, to hide their location, and instructed some “VIP customers” with significant U.S. ties to use shell companies, according to the CFTC. Those VIPs included trading firms based in the United States, the CFTC said.
Arrangements with trading firms were allegedly facilitated through a formal process at Binance called “VIP Handling,” the CFTC said.
Arrangements with trading firms were allegedly facilitated through a formal process at Binance called “VIP Handling,” the CFTC said.
Hayden Hughes, co-founder of social trading platform Alpha Impact, said the CFTC’s lawsuit raises the specter of trading firms pulling out of Binance.
Hayden Hughes, co-founder of social trading platform Alpha Impact, said the CFTC’s lawsuit raises the specter of trading firms pulling back from Binance.
“Market makers typically don’t want to be caught in a crossfire between US regulators and Binance,” Hughes said.
“Market makers typically don’t want to be caught in a crossfire between US regulators and Binance,” Hughes said.
