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Crime and Investigations

Massive Outflows from Binance Before CFTC Indictment

Massive Outflows from Binance Before CFTC Indictment

According to recent reports, Thanefield Capital has revealed that in the 12 hours leading up to the indictment of Binance and its CEO Changpeng Zhao by the United States Commodity Futures Trading Commission (CFTC) for regulatory violations, almost $1.5 billion in cryptocurrency was withdrawn from several centralized platforms.

The largest portion of this amount, about $850 million, was withdrawn from Binance. Interestingly, just one hour after the announcement of the indictment, an additional $240 million was withdrawn from the exchange.

This news has been making waves in the crypto community, as it suggests that investors and traders are becoming increasingly wary of the regulatory risks associated with certain centralized exchanges.

It also raises questions about the long-term viability of such exchanges, particularly as governments worldwide continue to tighten their grip on the cryptocurrency industry.

Despite these concerns, Binance still holds substantial cryptocurrency assets, including over $2 billion worth of USDT, $17 billion worth of Bitcoin, and $8.1 billion worth of Ether.

However, the CFTC lawsuit is the latest in a series of investigations and inquiries that Binance has faced recently.

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The Internal Revenue Service (IRS) and federal prosecutors have also been looking into Binance’s adherence to Anti-Money Laundering rules. The Securities and Exchange Commission (SEC) is investigating whether Binance allowed U.S. traders to access unregistered securities.

Changpeng Zhao has already rejected the allegations made by the CFTC, insisting that Binance does not trade for profit or manipulate the market under any circumstances. Nevertheless, the ongoing investigations and increasing regulatory scrutiny are likely to have a significant impact on the future of Binance and other centralized exchanges.

Andrey Kunev

Reporter at CoinsPress

Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.

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