According to data from DeFillama, crypto traders using Binance US withdrew $78.48 million on June 7, despite assurances that their funds were safe. This news follows a report that the US Securities and Exchange Commission (SEC) had sued Binance.US for violating federal securities law and placing investors at risk. On June 5, Binance US recorded outflows of $506,850, and on June 6, it saw $7.941 million in outflows. However, outflows from the platform increased by nearly 10x to $78.48 million after reports emerged that the SEC sought a restraining order to freeze the assets of Binance.US’s parent company, BAM. The total value of tokens held by Binance.US on the Ethereum chain is reportedly $321 million, indicating the outflows amounted to around 24% of the current TVL.
Blockchain Analytical Firm Corroborates Outflows Report
Blockchain analytical firm Nansen corroborated the outflows report in a June 7 tweet. According to the firm, Binance US recorded $64.5 million in net outflow within an hour. This withdrawal was heavily influenced by two large Polygon’s MATIC withdrawals worth about $62 million.
Binance US Maintains It Is Fully Operational
In a June 6 statement, Binance US maintained that it remained fully operational and its withdrawals and deposits were functioning optimally despite the SEC’s move to freeze its assets. Binance.US described the SEC’s preliminary injunction as “unwarranted,” adding that it was borne out of the Commission’s desire to obtain an “advantage in litigation versus genuine concern about the safety of customer assets.” The US-based platform added that the SEC filed the injunction despite assuring the Commission its users’ funds were safe. Binance US said that it would defend itself in court.
Regulator Seeks to Freeze Binance.US Assets and Return Customers’ Funds
The regulator wants Binance.US to return customers’ funds and crypto assets on its platform and has sought a restraining order to freeze the assets of Binance.US’s parent company, BAM. The SEC’s move comes after years of engagement with the Commission, during which time it had not expressed a concern about the safety of customer assets. However, through near around-the-clock dialogue over the past week, the company’s counsel addressed the SEC Staff’s concerns regarding the safety of customer assets.