On-chain analyst Willy Woo has stated that Binance customers are not concerned about recent enforcement actions by the Securities Exchange Commission (SEC). He made these comments regarding Bitcoin holders on the main global platform. However, further analysis showed that Binance.US altcoin holders have been withdrawing significant funds. The SEC filed a motion on June 6, requesting the court freeze assets held by Binance.US. Woo conducted on-chain analysis which showed that Binance’s Bitcoin balance appears relatively stable, indicating that users are not panicking or rushing to withdraw their BTC at present.
One commenter replied to Woo that this reflected a change in sentiment: “People are finally saying FU to the corruption of Gensler and the governments.” Another echoed Woo’s premise of Binance users remaining largely unfazed, saying the SEC “overplayed their role,” and investors no longer consider them a legitimate organization. The Co-founder of Reflexivity Research, Will Clemente, suggested that the securities agency was deliberately trying to cause a run on Binance. Adam Cochran said, “A run on that should do no damage” if Binance has 1:1 backing as it claims.
Binance.US Altcoin Users Concerned About SEC’s Enforcement Actions
Data from DeFi Llama showing ERC-20 flows on Binance.US paints a different story from above. While Bitcoin held by Binance.com may be relatively stable, Ethereum-based assets held by Binance.US saw a $76.5 million outflow on June 7. Days earlier, on June 5, the day the SEC filed against Binance, Binance.US, and CEO Changpeng Zhao (CZ) over allegations of operating an unregistered exchange, among other charges, total Ethereum outflows from the U.S. arm came in at $506.9 million. The disparity suggests Binance.US altcoin users are more concerned about the potential implications of the SEC’s enforcement actions against the company.
Binance CEO Changpeng Zhao (CZ) clarified that the motion to freeze assets would only affect Binance.US if approved by the court. “It does NOT affect Binance.com. Funds are #SAFU.”
Analysis of Binance’s Bitcoin Balance
Woo’s analysis shows that Binance’s Bitcoin balance appears to be relatively stable. This implies that users are not panicking or rushing to withdraw their BTC at present. However, this stability may not be reflective of the entire Binance ecosystem, as data from DeFi Llama shows that Ethereum-based assets held by Binance.US saw significant outflows following the SEC’s enforcement actions. Despite the concerns of Binance.US altcoin users, Binance CEO Changpeng Zhao (CZ) has stated that the motion to freeze assets would only affect Binance.US if approved by the court.