Investors Withdraw 3,423 BTC from Binance Within 24 hours of CFTC lawsuit

Investors withdrew 3,423 bitcoins from Binance immediately after the United States Commodity Futures Trading Commission (CFTC) sued the crypto exchange and its CEO Changpeng “CZ” Zhao for regulatory violations.

This saw a reduction in Binance’s total Bitcoin balance while other exchanges registered an increase within the period. 

Data from Coinglass shows that US-based crypto exchange, Coinbase, Bitfinex, OKX and Gemini saw a combined Bitcoin deposit of 1,032 as some investors worried about what may befall the Binance exchange. 

Investors King understands that Monday’s bitcoin withdrawal on the Binance platform constitutes more than 90% of the total withdrawals in the past seven days. A total of 3,915 BTC were withdrawn from the Binance platform in the past week. 

It would be recalled that the U.S. Commodity Futures Trading Commission (CFTC) alleged that the world’s biggest crypto exchange by trading volume is running unregistered securities and also tried to evade regulators by asking customers in the U.S. to use VPN. 

Binance’s compliance programme has been “ineffective” and the firm, under the direction of Zhao, told employees and customers to circumvent compliance controls, the CFTC said. 

Responding to the development in a series of tweets, Binance CEO Changpeng Zhao (CZ) who was born in China and moved to Canada at the age of 12, called CFTC’s complaint “unexpected and disappointing”.

“Upon an initial review, the complaint appears to contain an incomplete recitation of facts, and we do not agree with the characterisation of many of the issues alleged in the complaint,” the crypto billionaire said. 

CZ however stated that the crypto exchange will collaborate with U.S. regulators to resolve all grey areas. 

Meanwhile, some crypto enthusiasts have expressed huge concern with respect to the offensive launched against crypto firms in the U.S. They observed that the renewed offensive is coming amid the collapse of some big banks in the United States.