Binance Bitcoin balance drops by 3.4K BTC within 24 hours of CFTC lawsuit
Soon after the United States Commodity Futures Trading Commission (CFTC) sued crypto exchange Binance and its CEO Changpeng ‘CZ’ Zhao over regulatory violations, the entrepreneur sought damage control measures while rejecting allegations of market manipulation. However, investors responded by pulling off over 3,400 Bitcoin (BTC) within 24 hours of the announcement anticipating market fluctuations.
“Binance.com does not trade for profit or “manipulate” the market under any circumstances,” stated CZ while responding to CFTC’s allegations. However, episodes involving crypto entrepreneurs such as FTX’s Sam Bankman-Fried and Terraform Labs’ Do Kwon shook investors’ confidence and trust in the crypto ecosystem.
My Response to the CFTC Complaint | Binance Blog https://t.co/TadyotM7HN
On the other hand, investors have started spreading out their assets away from Binance to lessen the impact of a shut down if it were to happen. As a result, Binance saw a reduction in its total Bitcoin balance while other exchanges reciprocated an increase, as shown below.
Over the last 24 hours, Binance’s Bitcoin balance was reduced by over 3,900 BTC the past week, out of which 3,400 BTC were pulled out in the last 24 hours alone.
Competing exchanges, including Coinbase, Bitfinex and Gemini, recorded an increase in BTC reserves during the 24-hour timeframe.
It is important to note that Bitcoin balances on crypto exchanges have been on the decline since March 20. Over the last seven days, nearly 27,000 BTC in total were taken off major exchanges combined.
Related: 7 details in the CFTC lawsuit against Binance you may have missed
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