Markets

Binance experiences 5 days of outflows amid SEC lawsuit

Binance’s total assets have fallen by more than $8 billion since the US Securities and Exchange Commission (SEC) filed a lawsuit against the company on June 5.

According to DeFillama data, the stock’s total assets fell to $55.95 billion from $64.195 billion recorded on June 5. an offer Binance’s total reserve balance is $54.3 billion as of press time.

An analysis of assets by chain shows that Binance has $155.35 billion in assets on Tron, $15.29 billion on Bitcoin, and $12.39 billion on the Ethereum network. Blockchains like BSC, Ripple, and Solana also hold a large amount of platform assets.

Binance assets (source: devilama)

Binance records 5 consecutive days of outflows

Data from DeFillama also shows that Binance has been seeing net outflows since June 6 — the day after the financial regulator sued it for violating federal securities law.

While the exchange has consistently maintained that its users’ funds were safe, withdrawals have totaled more than $3 billion since the lawsuit. During this period, the SEC moved to freeze Binance’s US assets and issued a subpoena to CEO Changpeng ‘CZ’ Zhao.

Binance has been pouring in US dollars since the SEC lawsuit
Binance has been pouring in USD since the SEC lawsuit (source: devilama)

Meanwhile, outflows on the platform have slowed dramatically to $69.57 million as of June 11, according to DeFillama data.

However, this wave of withdrawals pales in comparison to what the exchange processed after the FTX crash in November 2022. In that time, Binance has processed more than $6 billion in withdrawals as cryptocurrency users embraced bodyguard services.

CZ explains Binance Streams

On June 10, Czechoslovakia to explain that some data collectors may incorrectly measure its reserves. According to him, some third-party analytical firms measure changes in assets under management (AUM) in US dollar equivalents as an outflow. He noted that these are two different things as a decline in cryptocurrency prices (which leads to a decrease in assets under management) would be classified as an “outflow.”

CZ added that some platforms do not measure inflows and focus only on outflows. The CEO needed to clear these up after rumors surfaced that Binance had converted its cryptocurrency holdings into fiat currency.

Disclaimer

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