Bitcoin holders move funds from Binance in an attempt to ensure fund safety.
Following the United States Commodity Futures Trading Commission (CFTC) lawsuit against Binance and its CEO, Changpeng "CZ" Zhao, more than 3,400 Bitcoin (BTC) were moved from the crypto exchange within the last 24 hours.
US CFTC lawsuit claims that, among other things, Binance and its CEO made several regulatory violations, such as alleged market manipulation and trading using "house accounts."
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
How to Learn Crypto The Easy Way? (Trending Beginners' Strategy)
In response to the allegations, CZ shared a blog post claiming that "Binance.com does not trade for profit or 'manipulate' the market under any circumstances."
However, it appears that CZ's response wasn't enough, as recent events involving crypto entrepreneurs like Sam Bankman-Fried and Do Kwon have affected investor stance on the crypto industry.
Therefore, it can be assumed that as a protective measure, investors have begun moving their assets away from Binance. This shift resulted in a decline in Binance's total Bitcoin balance, while other crypto exchanges observed an increase.
Over the past week, Binance's Bitcoin balance fell by more than 3,900 BTC, with 3,400 BTC being withdrawn within the last 24 hours alone.
In contrast, other crypto exchanges such as Coinbase, Bitfinex, and Gemini experienced a growth in their BTC reserves during the same timeframe.
However, it should be noted that overall since March 20th, Bitcoin balances on major cryptocurrency exchanges have been falling. In the last week, close to 27,000 BTC have been withdrawn from these platforms.
It is worth noting that a slight decline in Bitcoin (BTC) prices is also considered to be impacted by the CFTC lawsuit against Binance. After the news broke, the BTC price started going down from $27,869 to $27,135 at the time of writing.
