Following the lawsuits against Binance from the SEC, the exchange and its CEO have filed a motion of dismissal.
Earlier this week, Binance saw a massive number of withdrawals after uncertainty reports regarding its proof of reserve system.
According to data from blockchain analytics platform Nansen, the leading crypto exchange hit $902 million outflows in just 24 hours, with the number of assets leaving the exchange massive compared the funds coming in. While other exchanges have been experiencing withdrawals following the FTX crash and users looking to self-custody, no other outflows are anywhere near the volume of Binance which is nearly nine times more than the second largest withdrawal amount.
The previous record withdrawal rate for Binance was just two days after FTX filed for bankruptcy protection. Since then, there has been a stream of reports related to the leading exchange which has heightened the uncertainty in already cautious investors. This means Binance is looking at concerning news reports coupled with the industry’s loss of trust in centralised exchanges, bearing in mind the market is still rallying from a bear market crash late last year.
Major market makers Jump Trading is just one of the accoutns that have moved funds from Binance in the last week. As mention by Nansen analyst Andrew Thurman, Jump Trading is one of the largest institutional investors that are withdrawing from Binance.
Jump has net outflows from Binance in excess of $146 million on the week, and no inflows
If Binance books look like they’re completely drained of all liquidity, the exit of possibly the largest MM is probably a good reason why
— Andrew T (@Blockanalia) December 12, 2022
Looking at the report, the withdrawals from addresses linked to Jump have come to around $146 million in cryptocurrencies in the last week, which include $102 million in Binance USD and $14 million in Tether.
Despite the news, Binance CEO Changing “CZ” Zhao has implored his followers to ignore the “FUD” and maintain building in the industry.
Ignore FUD. Keep building!
— CZ 🔶 Binance (@cz_binance) December 12, 2022