Binance CEO CZ responds as data points to billions in exchange outflows

Although data points to crypto assets having been withdrawn from centralized exchanges at a more rapid rate in the past week, Changpeng Zhao, CEO of Binance, believes the situation may not be as dire as it appears.

Analytics platforms such as Nansen and DeFiLlama have all indicated an increase in exchange outflows from Binance over the last seven days since the announcement of the SEC lawsuit against the company was released.

Nansen reported that in the last seven days, a total of $2.36 billion has left Binance, with an additional $123.7 million flowing out of Binance.US.

DeFiLlama reported a staggering figure of $3.35 billion in outflows from Binance, while according to Glassnode data, the exchange’s BTC balance has decreased by 5.7%, equivalent to approximately $1 billion in the last seven days.

In a June 10 Twitter post, CZ pointed out that some exchange outflow data can be distorted, as certain third-party analytics interpret a decrease in assets under management as an “outflow,” even if it is due to a decline in cryptocurrency prices.

CZ asserted that the company’s outflow over the preceding 24 hours on June 9 was approximately $392 million, a fraction of the $7 billion one-day outflow registered in November of last year, shortly after FTX’s failure.

CZ went on to explain that considerable inflows and outflows are to be expected during times of instability.

Binance has claimed that it is distinct from other exchanges in light of the SEC lawsuit.

Since June 6, when the SEC launched its offensive against Coinbase and Binance, the total market capitalization of cryptocurrencies has dropped by 7%, equating to a loss of more than $80 billion, as reported by CoinGecko.

Cointelegraph reported on June 9th that decentralized finance (DeFi) volumes experienced an increase of over 400% in the wake of the double lawsuits targeting centralized exchanges.

The SEC has classified 67 crypto-securities as Binance and Coinbase face a court battle: Hodler’s Digest, June 4-10.