Binance experiences spike of withdrawals as almost $2 billion are out after sensational news
crypto analytics portal Nanase Major cryptocurrency exchange Binance reports a massive outflow of funds over the past 24 hours. It reported net outflows of $1.6 billion, and that’s only in ERC20 tokens and ETH.
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 triggered by a Reuters article about the US prosecutor’s office considering charging Binance and its executives with money laundering and sanctions violations. Changpeng Zhao, or CZ, head of the exchange, termed the news FUD (fear, uncertainty and doubt) and urged everyone not to worry.
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, lookunchain Wintermute is reporting an inflow of funds from trading at the black-and-yellow exchange, which is also a major crypto market maker. According to reports, the firm has moved around $150 million to Binance in the past few hours, having previously withdrawn it from Coinbase.
