SEC Lawsuits Trigger Massive Withdrawals Of Bitcoin And Ethereum, Totaling Nearly $1 Billion In 7 Days
Within a span of six days since the lawsuit against Binance and five days since the lawsuit against Coinbase, data indicates that approximately $996 million worth of ETH and BTC has been withdrawn from these platforms.
By Anna B Kiwanuka
In a matter of days following the Securities and Exchange Commission’s (SEC) actions against two major cryptocurrency exchanges, Binance and Coinbase, a substantial exodus of funds has been witnessed. Crypto enthusiasts have been actively withdrawing Bitcoin (BTC) and Ethereum (ETH) from centralized exchanges in response to these regulatory developments.
Data from cryptoquant.com reveals that on the day preceding Binance’s lawsuit on June 5, 2023, centralized trading platforms held approximately 2.155 million BTC. However, since then, a significant 22,263 BTC, valued at $574.15 million based on current exchange rates, has been withdrawn. As of 8:30 a.m. Eastern Time (ET) on Sunday, the total BTC held by various exchanges stood at 2.133 million. Similar trends can be observed in Ethereum (ETH) withdrawals, with exchange holdings dropping from 15.96 million ETH to 15.72 million ETH, indicating a withdrawal of approximately 241,366 ETH valued at $422.78 million based on current ether exchange rates.
Overall, nearly $1 billion in value, spanning both Bitcoin and Ethereum, has been withdrawn from centralized trading platforms within the past week. While many individuals have chosen to transfer their funds away from exchanges, data suggests that some have redeposited these cryptocurrencies into different trading platforms, indicating a game of musical chairs among BTC whales.
Specifically, analysis from coinglass.com highlights that Binance witnessed total withdrawals of 40,427 BTC over the past seven days, with 7,008 BTC being removed in the last 24 hours alone. In contrast, Coinbase experienced a net addition of 2,959 BTC to its reserves over the week, although 20 BTC were withdrawn in the past day. Interestingly, the other top exchanges, Bitfinex, OKEx, and Gemini observed noticeable inflows. Bitfinex received deposits of 1,556 BTC, OKEx added 3,772 BTC to its reserves, and Gemini saw an influx of approximately 1,070 BTC within the same week.
The SEC lawsuits against Binance and Coinbase have evidently shaken the crypto market, prompting a significant movement of funds away from exchanges. These developments underscore the impact of regulatory actions on investor confidence and highlight the evolving landscape of cryptocurrency regulation.