cryptocurrency news

CFTC lawsuit against Binance: Investors withdraw billions from crypto exchange

The lawsuit by the US derivatives regulator CFTC against Binance has scared customers of the world’s largest cryptocurrency exchange. They withdrew $1.6 billion from their accounts since Monday, data provider Nansen said on Wednesday. Of this, 852 million dollars have flowed out at Binance within the past 24 hours alone. The CFTC accuses Binance of willfully circumventing laws. The trading platform is illegal and the internal compliance program is a sham. Binance denied this.

The outflow of funds at Binance is currently more than twice the daily average of the past two weeks, explained Nansen analyst Martin Lee. However, they are still far from the level of mid-December. Because of the uncertainty after the collapse of the FTX crypto exchange, Binance customers had withdrawn three billion dollars from their accounts within a very short time.

Binance has multiple troubles with US investigators. Among other things, they accuse the exchange of money laundering and evading sanctions in the billions. Also, US authorities banned the company from issuing further Binance USD digital coins. Founded in 2017, the company processed $23 trillion in transactions last year, according to industry service CryptoCompare.

Also read: Will Binance get a license in Germany?

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