The US Securities and Exchange Commission’s lawsuit against the Binance exchange sent shockwaves through the investing community, resulting in many cryptocurrency holders taking their assets offline.
According to the Nansen report, $871 million worth of ETH was sent into Binance, only to be followed by an outflow of over $1.6 billion.
An hour after news of the lawsuit broke, $50.5 million had been withdrawn, with only $14.8 million coming back in.
The announcement of the lawsuit saw the price of Bitcoin drop to a two-month low, and a similar situation occurred in November 2022, when investors withdrew over $20,000 BTC from Binance amid fears that the exchange was facing financial difficulty and could suspend user services and freeze withdrawals.
