Binance experiences spike of withdrawals as almost $2 billion are out after sensational news
Crypto analytics portal Nansen reports a large outflow of funds from leading cryptocurrency exchange Binance in the last 24 hours. It reported a net outflow of $1.6 billion, and that is just in ERC20 tokens and ETH itself.
There’s a spike in withdrawals from Binance in the last 24H with -$1.6B* netflow
Its 7-day netflow is now at -$1.9B, currently this is less than the -$2.3B weekly netflow Binance has processed in the wake of FTX collapse
*ETH & ERC20 tokens only pic.twitter.com/pwbeQXtDxK
— Nansen 🧭 (@nansen_ai) December 13, 2022
Total outflows over the last seven days are almost $2 billion, which, according to Nansen is still lower than what the exchange experienced when investors fled centralized platforms during the FTX collapse just over a month ago. At that time, Binance saw a $2.3 billion outflow in a week.
The spike in outflows was probably triggered by a Reuters article about the U.S. prosecutor’s office considering charging Binance and its executives with money laundering and sanctions violations. The head of the exchange, Changpeng Zhao or CZ, dubbed the news FUD (fear, uncertainty and doubt) and urged everyone not to worry.
Smart money reacts in different ways
The Nansen analyst also noticed large withdrawals by Jump Trading, a well-known large crypto trading firm and market maker. Thus, Jump withdrew $146 million from Binance in the last week.
On the other hand, Lookonchain is reporting an influx of funds to the black-and-yellow exchange from Wintermute Trading, also a major crypto market maker. According to reports, the firm has transferred almost $150 million to Binance in the last few hours, having previously withdrawn it from Coinbase.