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Almost $2 Billion out of Binance After Criminal Charges News: Details

Tue, 12/13/2022 - 09:13
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Gamza Khanzadaev
Binance experiences spike of withdrawals as almost $2 billion are out after sensational news
Almost $2 Billion out of Binance After Criminal Charges News: Details
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Crypto analytics portal Nansen reports a large outflow of funds from leading cryptocurrency exchange Binance in the last 24 hours. It reported a net outflow of $1.6 billion, and that is just in ERC20 tokens and ETH itself.

Total outflows over the last seven days are almost $2 billion, which, according to Nansen is still lower than what the exchange experienced when investors fled centralized platforms during the FTX collapse just over a month ago. At that time, Binance saw a $2.3 billion outflow in a week.

The spike in outflows was probably triggered by a Reuters article about the U.S. prosecutor's office considering charging Binance and its executives with money laundering and sanctions violations. The head of the exchange, Changpeng Zhao or CZ, dubbed the news FUD (fear, uncertainty and doubt) and urged everyone not to worry.

WSJ Says Binance’s Finances Remain “a Mystery”

Smart money reacts in different ways

The Nansen analyst also noticed large withdrawals by Jump Trading, a well-known large crypto trading firm and market maker. Thus, Jump withdrew $146 million from Binance in the last week.

On the other hand, Lookonchain is reporting an influx of funds to the black-and-yellow exchange from Wintermute Trading, also a major crypto market maker. According to reports, the firm has transferred almost $150 million to Binance in the last few hours, having previously withdrawn it from Coinbase.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.