- Binance endured a massive inflow of digital assets in the last hour.
- The total deposit volume surpassed the total withdrawal volume.
- The positive turn in the Netflow followed the negative wave after the recent lawsuit against the exchange.
According to the findings of the blockchain research platform Nansen, the NetFlow to the leading crypto exchange Binance over the last hour has exhibited a positive turn with more deposits than withdrawals. Despite the ongoing legal battle between Binance and the Securities and Exchange Commission (SEC), the exchange had a massive inflow volume surpassing the outflow volume.
Nansen took to Twitter to share the details of exchange flows in which Binance takes a substantial position:
As per the data provided by Nansen, the prominent tokens including USDT, and ETH have been deposited to Binance, from different counterparties, especially on Ethereum. The stunning factor is that a majority of the transactions exhibited 0% withdrawal volumes.
Over the past few weeks, Binance has been struggling under the strict regulations of the SEC. In a recent groundbreaking turn, the regulators have charged Binance with 13 allegations, including “operating unregistered exchanges, broker-dealers, and clearing agencies; misrepresenting trading controls and oversight on the Binance.US platform; and the unregistered offer and sale of securities”.
Yesterday, following the lawsuit, the exchange endured a massive outflow that surpassed the inflow. The highest levels of withdrawals from Binance began from March when the Commodity Futures Trading Commission (CFTC) sued the exchange for trading unregistered tokens.
As per the data, Binance had about $503 million in outflows on Monday with traders withdrawing more than $1 billion of digital currencies. The total deposits of the period accounted for just $546 million, according to the chart.
Binance has been going through a series of crises over the last few months, including CFTC’s charges and the SEC’s lawsuit. As a consequence, there have been rumors regarding the resignation of the current Binance CEO Changpeng Zhao, and the succession of the new CEO Richard Teng.
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