A Securities and Exchange Commission lawsuit against the Binance exchange has spooked many investors and forced them to resume taking the cryptocurrency offline.
A report from Nansen said that ether outflows in just the last 24 hours exceeded the digital currency’s inflows to the trading floor.
While traders sent up to $871 million worth of ETH to Binance, the outflow was more than $1.6 billion. Within just one hour of reports of a lawsuit against the exchange, investors withdrew $50.5 million worth of cryptocurrency from the platform, while inflows were only $14.8 million.
As a reminder, the U.S. regulator accused Binance of violating securities laws. The lawsuit triggered bitcoin to a two-month low last Monday.
A similar situation was observed in November 2022. Within twenty-four hours of the FTX exchange crash, investors withdrew more than $20,000 BTC from Binance.
They feared that the company, faced with financial problems, would suspend services to users and freeze withdrawals.