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SEC crackdown prompts $4 billion in deposits to leave Binance, Coinbase, and Binance.US

Despite a sizable wave of customer withdrawals, the exchanges—targeted by the SEC for breaking federal securities laws—have so far been able to complete transactions in a timely manner.

Legal actions brought by the U.S. Securities and Exchange Commission (SEC) against Binance.According to blockchain statistics, the withdrawal of about $4 billion in deposits from the largest cryptocurrency exchanges was sparked by US and Coinbase.
Data from blockchain analytics companies Nansen and Glassnode reveals that between Monday and Thursday, the three exchanges had a net outflow of $3.1 billion via the Ethereum network and $864 million in bitcoin (BTC). Net outflow denotes a situation when withdrawals exceeded deposits.

Due to several violations of federal securities laws, the SEC has already launched a complaint against Binance, its U.S.-based company Binance.US, and its CEO Changpeng “CZ” Zhao. Later, the government filed a lawsuit against Coinbase on Tuesday for exposing the general public to unregistered securities.

The SEC described certain tokens as securities in the lawsuits, such as Binance’s BNB, Cardano’s ADA, and Polygon’s MATIC, and these tokens fell the most during the course of the week as a result of the moves, which unnerved the cryptocurrency market. As traders and market makers leave the platform, the SEC is attempting to freeze assets on Binance.US, which led to a temporary increase in the price at which bitcoin (BTC) and ether (ETH) traded in comparison to other platforms.

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