In the past 24 hours, crypto users have withdrawn approximately $400 million worth of Ethereum from Binance, while Paxos, the issuer of the Binance USD, has destroyed more than $155 million BUSD.
Users of Binance withdrew significant amounts of cryptocurrency from the exchange on Monday, following news that U.S. regulators had filed a lawsuit against Binance and its founder, Changpeng Zhao.
According to blockchain analytics firm Nansen, Binance has experienced a net discharge of $400 million in Ethereum over the past 24 hours. This compares to a $2 billion net outflow over the past week. Traders Nansen considers “smart money” operators have withdrawn $9 million from Binance over the past 24 hours as of press time.
The on-chain movements show the anxiety of crypto traders in an uncertain regulatory environment. Although Binance has not taken steps to close its doors, even the possibility of something going wrong at the largest cryptocurrency exchange by volume is driving away depositors.
In addition, Paxos, a former issuer of the Binance USD (BUSD) stablecoin, incinerated more than $155 million worth of BUSD (2% of the circulating supply) over the past four hours on Monday, representing another instance of investor flight.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.