Stablecoin

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	Crypto exchange Binance is in hot water as the U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against the company and its founder, Changpeng &#8220;CZ&#8221; Zhao, over allegations of violating federal securities laws.
This <a href="https://www.docdroid.net/I02zzqT/sec-v-binance-4-pdf" rel="nofollow noopener" target="_blank">development</a> has triggered a significant reaction from the market, with data from <a href="https://pro.nansen.ai/exchange-flows" rel="nofollow noopener" target="_blank">Nansen.ai</a> showing that outflows from Binance across all protocols reached $719 million over a 24-hour period.
Just during U.S. trading hours, net outflows from <a href="https://www.binance.com/" rel="nofollow noopener" target="_blank">Binance</a> amounted to $230 million following the <a href="https://crypto.ro/en/news/sec-identifies-12-tokens-as-securities-in-lawsuit-against-binance-and-ceo-changpeng-zhao/">SEC&#8217;s announcement of the legal action</a>.
Interestingly, despite the massive outflow, Binance&#8217;s stablecoin balance remains robust at just over $8 billion, with a seven-day outflow of $519 million, equivalent to approximately 6% of its total holdings.
Comparatively, <a href="https://crypto.ro/en/exchange/okex">OKX</a>, the exchange with the next largest stablecoin holdings, reports a balance of $4 billion.
It&#8217;s also noteworthy that the outflows are within historical norms according to Seoul-based crypto analytics firm, <a href="https://twitter.com/cryptoquant_com/status/1665929071694610432" rel="nofollow noopener" target="_blank">CryptoQuant</a>.
<figure id="attachment_21909" aria-describedby="caption-attachment-21909" style="width: 841px" class="wp-caption alignnone"><img decoding="async" class="wp-image-21909 size-full" src="https://crypto.ro/en/wp-content/uploads/2023/06/Stablecoin-exchange-balance.png" alt="Stablecoin exchange balance" width="841" height="397" srcset="https://crypto.ro/en/wp-content/uploads/2023/06/Stablecoin-exchange-balance.png 841w, https://crypto.ro/en/wp-content/uploads/2023/06/Stablecoin-exchange-balance-300x142.png 300w, https://crypto.ro/en/wp-content/uploads/2023/06/Stablecoin-exchange-balance-768x363.png 768w, https://crypto.ro/en/wp-content/uploads/2023/06/Stablecoin-exchange-balance-750x354.png 750w" sizes="(max-width: 841px) 100vw, 841px" title="Binance hit by SEC lawsuit, triggers $719 million in withdrawals 5"><figcaption id="caption-attachment-21909" class="wp-caption-text">Stablecoin exchange balance | Nansen.ai</figcaption></figure>
The market reaction to the lawsuit isn&#8217;t entirely negative. As shared on Twitter by LookOnChain, a leading blockchain analytics platform, some institutional investors and whales seem to be buying from the bottom.
<blockquote class="twitter-tweet">
1/ Affected by the <a href="https://twitter.com/hashtag/SEC?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">#SEC</a> suing <a href="https://twitter.com/hashtag/Binance?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">#Binance</a>, there is a lot of <a href="https://twitter.com/hashtag/FUD?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">#FUD</a> in the market.
However, we have noticed that some institutions, whales, and SmartMoney seem to be buying from the bottom. 
<img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f447.png" alt="👇" class="wp-smiley" style="height: 1em; max-height: 1em;" />
— Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1665977584537206786?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">June 6, 2023</a></blockquote>
Cumberland, a leading global liquidity provider in the crypto asset space, withdrew 67.9M <a href="https://crypto.ro/en/cryptocurrencies/usd-coin">USDC</a> from Circle and deposited 67.1M USDC to <a href="https://crypto.ro/en/exchange/gdax">Coinbase</a>.
FalconX, a digital assets trading platform, also transferred a substantial amount of USDC from Circle to Binance.
Meanwhile, FBG Capital, a digital asset management firm, took a bold step by withdrawing 35M USDT from Binance and 9M USDT from OKX, before the SEC news broke, only to deposit all 44M USDT back to Binance after the news surfaced.
Another smart investor known for buying low and selling high deposited 15.9M <a href="https://crypto.ro/en/cryptocurrencies/tether">USDT</a> into Binance and withdrew 8,800 <a href="https://crypto.ro/en/cryptocurrencies/ethereum">ETH</a>, at an average buying price of approximately $1,808.
It is evident that while the lawsuit has caused significant withdrawals from Binance, the exchange&#8217;s stablecoin balance remains healthy, suggesting that the platform remains resilient amidst the controversy.
In addition, some major players in the crypto market appear to be taking advantage of the situation to invest more wisely, a sign that the crypto market can often see opportunities even in times of crisis.

Binance hit by SEC lawsuit, triggers $719 million in withdrawals

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