The US Securities and Exchange Commission (SEC) has taken legal action against Binance and Coinbase, accusing them of violating federal securities laws. This has caused panic among investors and the tokens identified as securities have seen a significant price drop.
Nansen and Glassnode’s data shows that between Monday and Thursday, Binance, Binance.US, and Coinbase had a net outflow of $3.1 billion through the Ethereum network and $864 million in Bitcoin (BTC). Binance alone had a net outflow of $2 billion in Ethereum-based tokens, which includes ETH, and 31,868 BTC ($838 million) according to Glassnode’s data.
Binance.US had net outflows of $75 million from the Ethereum network. Coinbase had a net outflow of $1 billion from Monday through Thursday according to Nansen and $25 million worth of Bitcoin outflows according to Glassnode.
The outflows this week, although sizable, account for only about 5% of the assets held on the exchange. Binance and Coinbase have processed the withdrawals promptly and no delays have been reported so far.
It is clear that the SEC’s action has had a considerable effect on the exchanges, and investors will be hoping that the situation is resolved quickly.
