Over the past week, Lookonchain analysts have recorded three large withdrawals from the Binance and Kraken crypto exchanges for a total of 86,520 ETH (~$150 million).
— lookonchain (@lookonchain) June 19, 2023
- first whale translated from a Binance address 35,860 ETH worth over $64 million;
- second – brought out 27,000 ETH for $48 million from the largest crypto exchange in terms of trading volume for four transfers;
- third wallet stripped off with Kraken 23,660 ETH worth over $42 million in five transactions.
The outflow of whales from centralized trading platforms is likely due to the decision of traders to store cryptocurrency on their own amid regulatory problems in the United States.
On June 5, the US Securities and Exchange Commission (SEC) sued Binance and its CEO Changpeng Zhao. The agency filed 13 charges, including the sale of unregistered securities.
The company responded by issuing a statement saying it was prepared to “resolutely defend itself”. Binance.US later announced a suspension of USD deposits and advised clients to withdraw fiat funds by June 13th.
On June 6, the SEC filed similar allegations against the Coinbase crypto exchange. The company refused to change the business model due to the Commission’s lawsuit.
Recall, Glassnode analysts reported that since the allegations against Binance, the platform’s bitcoin balances have decreased by 10,500 BTC.
Whales, Institutions and VCs “bought on the bottom” after news of the litigation, according to Lookonchain.
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