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Investors pull $780 million out of Binance in the wake of SEC lawsuit - Nansen

Published 06/06/2023, 11:42
Updated 06/06/2023, 11:42
© Reuters

Investing.com -- Investors have taken around $780 million out of Binance in the past 24 hours after the U.S. Securities and Exchange sued the world's biggest cryptocurrency exchange, according to figures from data firm Nansen.

The U.S. affiliate of Binance also saw outflows of $13M over the same timeframe, Nansen added.

The move comes after the SEC brought forward thirteen civil charges against Binance, including claims that the company had diverted customer funds into a trading entity controlled by chief executive Changpeng Zhao. That trading firm had also engaged in manipulative tactics to inflate Binance's trading volumes, the SEC added.

The SEC complaint also said Binance had been running unregistered exchanges and had misrepresented its trading controls to authorities.

"[W]e allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law,” said SEC Chair Gary Gensler in a filing.

Binance has denied the allegations, saying that user assets on its U.S. platform have never been at risk. But it noted that it is complying with SEC investigators.

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