Binance Faces $2 Billion Outflows as Challenges Pile Up
According to a report by the Wall Street Journal, Binance, the leading crypto trading platform, has witnessed a net outflow of more than $2 billion on the Ethereum blockchain over the past week, as per data from crypto analytics firm Nansen. Overall, Binance’s publicly disclosed wallets hold more than $63 billion. The Commodity Futures Trading Commission (CFTC) filed a lawsuit against the company earlier this week, claiming that Binance has been operating unlawfully within the United States and breaching regulations designed to combat illegal financial activities. Nansen observed that the rate of withdrawals had increased compared to typical activity and accelerated following the CFTC announcement.
Last week, the exchange reinstated fees on spot bitcoin trading after eliminating them during the previous summer. Binance’s market share in spot trading dropped substantially within a week after ending its popular zero-fee campaign. Additionally, as reported by U.Today, the crypto behemoth halted spot trading in order to fix a software glitch. Despite the significant outflows, Binance has encountered more considerable withdrawals in the past as a result of regulatory actions. Thurman noted that outflows were more substantial in February, following New York regulators’ clampdown on Binance’s BUSD stablecoin.