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Investors Withdraw $780 Million from Binance Following US SEC Lawsuit

In the aftermath of the US Securities and Exchange Commission (SEC) filing a lawsuit against Binance, the world’s largest cryptocurrency exchange, investors have swiftly withdrawn approximately $780 million from the platform within a 24-hour period. This significant outflow of funds reflects the growing concerns surrounding the legal challenges faced by Binance.

According to blockchain analytics firm Nansen, Binance.US, the US-based trading arm of Binance, experienced net cash outflows of $13 million during the same timeframe. However, neither Binance nor Binance.US have issued any official statements regarding these recent developments.

The SEC lodged the lawsuit against Binance in the federal court of Washington, D.C., accusing the exchange of neglecting to implement appropriate measures to prevent American customers from accessing its platform. Additionally, the SEC alleges that Binance misled investors regarding its market monitoring practices and engaged in trading activities involving unregistered securities.

Furthermore, the SEC claims that Binance has covert control over its clients’ assets and deliberately established a separate US unit to circumvent federal securities laws in the United States. It is worth noting that the US Department of Justice has also initiated its own investigation into Binance, focusing on potential money laundering and sanctions violations.

The legal challenges and regulatory scrutiny faced by Binance have sparked significant concerns among investors, leading to the substantial withdrawal of funds from the exchange. As the situation continues to unfold, market participants are closely monitoring Binance’s response and the potential implications for the broader cryptocurrency industry.

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