Since Binance was sued by the US CFTC on Monday, investors have removed $1.6 billion worth of cryptocurrency, according to blockchain data tracker Nansen.
The largest cryptocurrency exchange in the world, Binance, as well as its CEO and former top compliance official, were sued by the U.S. Commodities Futures Trading Commission (CFTC), who said they were running a “illegal” exchange and a “sham” compliance program.
According to Nansen, since the lawsuit, Binance has seen $1.6 billion in total withdrawals and $852 million in the last 24 hours, an increase from the $385 million per day average over the previous two weeks.
According to Martin Lee, a research analyst at Nansen, the withdrawals were greater than typical but still not as high as on December 13, when investors withdrew $3 billion from Binance due to their concerns over Binance’s reserve situation.
