Compared to the previous week, Binance’s BTC balance decreased by more than 3,900 BTC. 3,400 Bitcoin of the 3,900 BTC was withdrawn within the last 24 hours after the CFTC charges.
Following the legal action taken against Changpeng Zhao (CZ)— Binance’s CEO, and the company itself for violating regulations, Zhao took steps to mitigate the damage by denying any of the allegations. Despite this, investors withdrew more than 3,400 Bitcoin from the exchange in less than 24 hours after the news surfaced.
CZ—CEO of Binance, denied the CFTC’s accusations, claiming that Binance never manipulates the market for profit. Nevertheless, recent incidents involving cryptocurrency entrepreneurs like Do Kwon from Terraform Labs have caused investors to lose faith in the cryptocurrency industry.
Following the CFTC announcements, investors have started transferring their assets from Binance to avoid losing their assets in case of a shutdown of the exchange. Consequently, Binance’s BTC total balance decreased significantly.
However, other cryptocurrencies recorded an increase in their balances, as illustrated by on-chain data. Within the same period when Binance’s BTC reserves were dropping, the BTC reserves of its competitors were increasing.
Notably, data shows a record rise in the BTC reserves of Gemini, Bitfinex, and Coinbase. It is worth noting that major cryptocurrency exchanges have experienced a decrease in their BTC balances in the last week.
During this period, almost 27,000 BTC were withdrawn from these exchanges.
Binance’s Challenges Continue
Meanwhile, a US federal judge has temporarily blocked the proposed agreement between Binance.US and Voyager. The emergency stay was granted on March 27 by Jennifer Rearden — a judge from the United States District Court in N.Y Southern District.
The potential agreement between Binance.US and Voyager will be paused until a verdict is reached regarding the Justice department’s petition against the insolvent crypto lender.
Meanwhile, an analysis report from Bernstein, a leading asset manager, states that the United States CFTC may demand that Binance halt its operations in the United States as one of the conditions of a prospective settlement. This comes in the wake of the regulatory body filing a lawsuit against the cryptocurrency exchange and its founder, Changpeng Zhao.
The CFTC claims that Binance permitted US citizens to engage in derivative trading and deliberately circumvent the country’s legislation.
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