Binance’s on-chain balance remains high, standing at $64 billion despite a recent investigation by U.S. Commodity Futures Trading Commission (CFTC) for violating federal laws.
Data shows that a significant portion of Binance’s on-chain portfolio currently contains USDT, BTC, ETH, BUSD and BNB, representing roughly 81% of the crypto exchange’s total balance at press time.
According to blockchain analytics firm Nansen, the reserve displays the asset backing and strength of Binance, which may cushion heavy outflows such as was seen in FTX. This shows the world’s largest cryptocurrency exchange by trading volume is healthy despite the recent panic created by the CFTC investigation.
Investors King could recall that on the eve of the FTX collapse, many traders hurriedly withdrew their assets from the exchange, thereby causing more panic and an irredeemable situation. Some traders were also caught in the web losing billions of dollars to the collapse.
The crypto exchange saw $6 billion worth of withdrawals in 72 hours after Binance cancelled its initial purchase deal as the US regulatory agency launched a probe against FTX for trading violations. Before the collapse, FTX was the third-largest crypto exchange by trading volume.
Speaking on CFTC investigation and Binance on chain balance, Charles Storry, head of growth at crypto index platform “Phuture” stated that traders and investors who have exposure to Binance attached no serious issue to the investigation, seeing it as “business as usual”.
“The news from the CFTC hasn’t caused investor panic. That’s extended into those holding value in Binance …Binance isn’t well known for being the most transparent exchange, yet they’ve managed to weather many storms,” Storry said.
Meanwhile, Binance CEO Changpeng Zhao (CZ) said the U.S. Commodities and Futures Trading Commission (CFTC) has given “an incomplete recitation of facts, stating that the exchange “does not agree with the characterization” of many of the U.S. commodities regulator’s allegations.
The crypto billionaire however assured that Binance will cooperate with the U.S regulators to resolve all grey areas.