The SEC lawsuit against Binance has led to over $750 million in Ethereum over the past 24 hours.
The lawsuit filed by the United States Securities and Exchange Commission (SEC) against Binance, accusing the exchange of violating various securities laws, has directly affected the crypto market and the stock market’s balance sheet. According to data from crypto analytics firm Nansen, Binance has seen over $778 million in negative net flows on the Ethereum blockchain, with $871 million in inflows overshadowed by $1.6 billion exiting the exchange.
Declining Confidence in Binance Leads to Preference for OKX
Binance’s reserve assets saw a net outflow of nearly $1.4 billion in the first hour after news broke of the SEC’s impeachment, or 2.6 percent of its total reserve assets of $52.9 million.
Fund outflow from Binance across all protocols reached $999 million in the last 24 hours. On the other hand, waning confidence in Binance has helped OKX become a preferred destination for investors, and the exchange has recorded a significant inflow of over $190 million.
Compared to the Commodity Futures Trading Commission’s lawsuit against Binance in March, the recent net outflow was substantial but smaller. The same is true for December 2022, when Binance experienced major exits following FTX’s bankruptcy. Additionally, net outflows are still lower than the stock’s reserve. Binance currently has a stablecoin balance of over $8 billion.
Alongside the exits in Ethereum, Binance has also seen the biggest Bitcoin exit from the platform since FTX’s bankruptcy. More than 20,000 BTC have been withdrawn from the exchange in the last 24 hours.
Data shared by CryptoQuant revealed that total user transactions to withdraw funds increased after the SEC’s lawsuit announcement.
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