Based

Million

Gary

Scope

<p>According to data from Scope Protocol&#8217;s <a href="https://watchers.pro/transparency?network=eth">Web3 analytics tool, </a>centralized exchange Binance has experienced positive<a href="https://dataguide.cryptoquant.com/exchange-flows-indicators/exchange-in-outflow-and-netflow#:~:text=Exchange%20Netflow%20is%20the%20difference,the%20Transactions%20Count%20In%2FOutflow."> netflow</a> despite the SEC&#8217;s ongoing lawsuit against them.</p>



<figure class="wp-block-image"><img decoding="async" width="1024" height="396" src="https://chaindebrief.com/wp-content/uploads/2023/06/image-33-1024x396.png" alt="" class="wp-image-38003" srcset="https://chaindebrief.com/wp-content/uploads/2023/06/image-33-1024x396.png 1024w, https://chaindebrief.com/wp-content/uploads/2023/06/image-33-300x116.png 300w, https://chaindebrief.com/wp-content/uploads/2023/06/image-33-768x297.png 768w, https://chaindebrief.com/wp-content/uploads/2023/06/image-33-1536x594.png 1536w, https://chaindebrief.com/wp-content/uploads/2023/06/image-33.png 1599w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Image Courtesy: Watcher.pro by Scope Protocol</figcaption></figure>



<p>Despite almost $6bn in user assets being withdrawn from the platform over the last week, Binance has seen a surge in deposits over the last 24 hours, with stablecoins and Ether leading the way.</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">Based on our CEX transparency dashboard, <a href="https://twitter.com/binance?ref_src=twsrc%5Etfw">@binance</a> appears to have withstood the withdrawal pressure brought by the <a href="https://twitter.com/hashtag/SEC?src=hash&amp;ref_src=twsrc%5Etfw">#SEC</a> news and is experiencing positive net flows.<br><br>$1.38B inflow &amp; $521M netflow for the past 24H.<a href="https://twitter.com/cz_binance?ref_src=twsrc%5Etfw">@cz_binance</a> <a href="https://twitter.com/heyibinance?ref_src=twsrc%5Etfw">@heyibinance</a> <a href="https://t.co/ovQW3k6oWR">https://t.co/ovQW3k6oWR</a> <a href="https://t.co/yRhVmlEhY2">pic.twitter.com/yRhVmlEhY2</a></p>&mdash; 0xScope (<img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1faac.png" alt="🪬" class="wp-smiley" style="height: 1em; max-height: 1em;" /> . <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1faac.png" alt="🪬" class="wp-smiley" style="height: 1em; max-height: 1em;" />) (@ScopeProtocol) <a href="https://twitter.com/ScopeProtocol/status/1668536140008398850?ref_src=twsrc%5Etfw">June 13, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>Despite facing regulatory challenges, Binance is gradually regaining trust as evidenced by their strong netflow, even though they have a long journey ahead to fully recover their exchange balance from before the lawsuit.</p>



<p><br>On the other hand, Binance U.S. tells a different tale as it experienced a consistent net outflow, with a cumulative sum of $142 million over the past week.</p>



<p><a href="https://twitter.com/KaikoData/status/1668206152377663488">Further data</a> indicates that market makers on the platform have departed following the lawsuit, potentially relocating their services in response to the ongoing investigations.</p>



<h2 class="wp-block-heading" id="former-sec-enforcement-co-director-joins-binance-us-amid-legal-battle">Former SEC Enforcement Co-Director Joins Binance US Amid Legal Battle</h2>



<p>Facing <a href="https://chaindebrief.com/binance-statement-to-sec-we-are-prepared-to-fight-it-to-the-full-extent-of-the-law/">allegations of operating an illegal securities exchange</a>, Binance U.S. has enlisted the expertise of <a href="https://www.milbank.com/en/professionals/george-s-canellos.html">George Canellos</a>, a former co-director of the Securities and Exchange Commission&#8217;s enforcement division, along with three other lawyers.</p>



<p>Canellos, currently heading the litigation and arbitration group at Milbank, brings extensive experience from overseeing high-profile investigations at the SEC and serving as the chief of the major crimes unit at the US Attorney&#8217;s Office in the Southern District of New York.</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">Binance/DOJ Newsflash:<br><br>Binance and CZ just added a uniquely qualified criminal defense all-star lawyer to their legal team: George Canellos, former Chief of the Major Crimes Unit in the U.S. Attorney&#39;s Office for the Southern District of New York and former head of the SEC&#39;s New… <a href="https://t.co/lQlkZ6oxYc">pic.twitter.com/lQlkZ6oxYc</a></p>&mdash; John Reed Stark (@JohnReedStark) <a href="https://twitter.com/JohnReedStark/status/1668281271728893955?ref_src=twsrc%5Etfw">June 12, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>The exchange also announced on June 9 that it will be <a href="https://chaindebrief.com/binance-us-to-suspend-deposits-banking-partners-halt-withdrawal-channels/">temporarily suspending U.S. dollar deposits and potentially pausing fiat withdrawals, </a>with the changes set to take effect as early as June 13.</p>



<p>They have also expressed concerns over the SEC&#8217;s approach, which has concurrently faced criticism from U.S. lawmakers and industry leaders. Representative Warren Davidson went as far as proposing a bill aimed at restructuring the commission and calling for the firing of SEC chair Gary Gensler on June 12.</p>



<p><strong>Also Read: </strong><a href="https://chaindebrief.com/we-are-in-a-crypto-liquidity-crisis-but-the-reason-is-not-what-you-think/">We Are in A Crypto Liquidity Crisis – But The Reason is Not What You Think</a></p>



<p>[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]</p>



<p>Featured Image Credit: Chain Debrief</p>

Binance’s Netflow Soars to $500 Million Amid Mounting SEC Pressure

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