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<p class="is-style-lead">In a recent series of tweets, Changpeng Zhao (CZ), the CEO of Binance, revealed that the cryptocurrency exchange experienced a substantial net withdrawal amounting to approximately $392 million within a span of 24 hours.</p>



<p class="is-style-default">This revelation sheds light on the cash movement within the exchange during a turbulent period following the U.S. Securities and Exchange Commission&#8217;s legal action against <a href="https://crypto.news/sec-accuses-binance-ceo-of-diverting-billions-in-customer-funds/">Binance</a> and <a href="https://crypto.news/sec-sues-coinbase-just-hours-after-binance/">Coinbase</a>, which created substantial ripples across the cryptocurrency industry earlier this week.</p>



<p>Such developments within the cryptocurrency industry often attract attention and speculation, as market participants closely monitor the movements and activities of major exchanges.</p>



<p>However, the Binance CEO was swift to differentiate between cash withdrawals and changes in assets under management (AUM), emphasizing that the former might present a misleading impression of the company&#8217;s financial condition to external observers. </p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">Some even only measure outflow, not inflows. <br><br>On a sharp price movement day like today, many arbitrage traders move a lot of funds between exchanges, usually exponentially more than on normal days.</p>&mdash; CZ 🔶 Binance (@cz_binance) <a href="https://twitter.com/cz_binance/status/1667555997307531271?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 10, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>Arbitrage traders often transfer large sums of money between exchanges on days marked by significant price fluctuations, resulting in remarkably substantial outflows. </p>



<p>These withdrawals probably stem from investors seeking to capitalize on price disparities across various platforms rather than indicating a lack of trust in the exchange as a whole.</p>



<p>This is not the first time such massive outflows have been experienced on Binance. The CEO mentioned that in November 2022, users withdrew $7 billion on a single day yet the exchange didn&#8217;t fail on their obligations. </p>




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<p>These statements follow a Glassnode article published on June 6, which revealed that after the SEC filed 13 civil charges against Binance, the exchange experienced a net outflow of 10,500 Bitcoin (BTC).&nbsp;</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">When assessing the net outflow in USD terms, we note a value of -$277M, the 15th largest on record. Again, when comparing this to the peak net outflow of $1.04B, the current value remains -$763M (-73%) smaller. <a href="https://t.co/mHNDy1dRqq" target="_blank">pic.twitter.com/mHNDy1dRqq</a></p>&mdash; glassnode (@glassnode) <a href="https://twitter.com/glassnode/status/1666032104361041921?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 6, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<h2 class="wp-block-heading" id="binance-s-current-situation">Binance’s current situation</h2>



<p>Despite this increase, the current value remains significantly lower than the record-high net outflow of 40,300 <a href="https://crypto.news/price/bitcoin/">BTC</a>. </p>



<p>Furthermore, withdrawals ranging from $1 million to $10 million constituted 51% of this outflow, indicating that more significant transactions predominantly influenced the overall movement of funds. </p>



<p>Although recent withdrawals occurred, Binance still holds a substantial amount of bitcoin in its exchange addresses. </p>



<p>According to Glassnode, the current balance is 694,000 BTC, just 10,500 BTC shy of the all-time high of 704,500 BTC.</p>



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<iframe title="Is Binance the Next FTX? ($BNB to 0?)" width="1020" height="574" src="https://www.youtube.com/embed/MqbAblsGjs0?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
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<p>Despite recent developments, Binance retains a considerable quantity of bitcoin. The increased market activity in response to regulatory news is evident from Nansen, a data company, reporting a massive outflow of $780 million from Binance on June 6.</p>




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            Crypto trading firm moves $9.8m of polygon tokens to Coinbase, Binance, MATIC price tanking        </a>
    </p>

Users withdraw over $392 million from Binance within 24 hours

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