The announcement that Binance, the biggest cryptocurrency exchange in the world, was being sued by the US Securities and Exchange Commission (SEC), caused outflows of more than $700 million on the Ethereum network alone.
The outflow information, which showed that the net flows were negative even throughout the previous hour, was released on Twitter by on-chain analytical platform Nansen. Nansen’s statistics showed a $778.6 million 24-hour net outflow from Binance on the Ethereum network, which included ETH, ERC-20 tokens, and stablecoins. Net outflows on Ethereum for Binance.US, the US-based branch explicitly targeted by the SEC, were $13 million during that time.
According to Coinglass statistics, Bitcoin outflows from Binance totaled 13,484 BTC, or almost $347 million at the time of writing. With 545,491 BTC still available, Binance still has the most remaining BTC balance out of all cryptocurrency exchanges.
In the last 24 hours, outflows from Binance on the Bitcoin and Ethereum networks totaled more than $1 billion. On-chain experts claim that although these outflows are important in the near term, they do not present Binance with a significant long-term problem.
Will Clemente, a Bitcoin on-chain expert, reported that the withdrawals after the SEC lawsuit announcement were not significant, amounting to just a 1.5% fall in Binance’s BTC balance. On longer-term charts, Ki Young Ju of CryptoQuant.com, another on-chain expert, demonstrated that the outflows were comparatively modest.
Binance informed users that their funds on the exchange, including Binance.US, are safe in response to the SEC’s action. The exchange promised to strongly refute any claims that the security of client cash was in jeopardy.
The cryptocurrency market will be keenly watching how the SEC’s case against Binance will affect the company and any possible repercussions for the larger market as the legal process progresses.