The repercussions of yesterday’s civil action by the United States Commodity Futures Trading Commission (CFTC) against Binance CEO Changpeng Zhao (CZ) and the company has reverberated in the entire crypto industry.
Crypto-related stock markets led by Coinbase Global, Riot Platforms, Marathon Digital, and MicroStrategy Inc were all in losses on Tuesday. Additionally, the Bitcoin and Ethereum markets edged lower today, with BNB taking the largest hit.
The future of Binance operations in the United States looks bleak, whereby a report by Bernstein Research indicates the exchange could lose its U.S. market in the CFTC settlement. Moreover, Judge Jennifer Rearden of the U.S. District Court in New York on March 27 granted the emergency motion by the United States government in a bid to halt the potential deal between Voyager and Binance.US.
As a result, crypto market analysts forecast more choppy days in the short term despite the ongoing global banking crisis that has increased Bitcoin’s long-term success.
Investors Flee Binance Exchange
According to market data provided by Coinglass, over 4,761 Bitcoins have been withdrawn from the Binance crypto exchange in the past 24 hours. Additionally, over 5,253 Bitcoins have been withdrawn from the same exchange in the past seven days. As a result, Binance currently holds 534,784 Bitcoins in its reserves.
Interestingly, Coinbase Pro recorded an increase of 504 Bitcoins in the last 24 hours to hold 486,474 BTCs. Bitfinex is another centralized exchange that recorded a bump in Bitcoins reserves in the past 24 hours.
Similarly, the total Bitcoin balance on all exchanges significantly declined after the CFTC sued Binance and CZ. Moreover, it is a matter of time before other centralized exchanges are hit with a similar civil action.
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