The Binance CEO claimed that many people are representing the current situation in a very bad way, which further creating panic among the crypto Investors.
Binance is a global crypto exchange. The services of this exchange are available via a centralized platform as well as via a decentralized platform. Binance Smart Chain (BSC) is another independent crypto project under the roof of Binance’s crypto empire.
Last week, the United States Securities Exchange Commission (SEC) sued Binance’s independent American subsidiary BinanceUS over alleged unregistered securities offerings & controlling BinanceUS’s financial accounts while neglecting the safety of customers’ funds. Because of the lawsuit, many crypto Investors are not feeling well to trade crypto assets on the Binance exchange, despite Binance being free from SEC’s enforcement action, as Binance doesn’t provide services in the US.
On 10 June 2023, Binance CEO Changpeng Zhao (CZ) noted that customers were dragging out funds from the Binance exchange, following lawsuit news.
CZ said that on the same day, the exchange saw a net outflow of nearly $392 million, while a few people are showing a very big number wrongly.
According to CZ, the majority of the people are considering only funds outflow & they are not considering the inflow of the funds.
Furthermore, he explained that crypto assets trade prices also plunged significantly over the last 7 days & there people transferred huge amounts of crypto assets from the Binance exchange to another, as a part of marginal trading, but people are taking the whole thing negatively.
CZ reminded his followers that the highest funds outflow from the exchange took place in Nov 2022, following the bankruptcy of the Binance rival FTX exchange. In Nov, Binance saw a net outflow of $7 billion.
BNB coin price action
In the SEC’s suit against BinanceUS, we can see that the SEC body alleged that the BNB coin is a security token. Following all such negative news, the BNB coin struggled badly to reach its normal $300 trade price range.
The current trade price of BNB is $233 & this trade price is 22% down over the last 7 days of trade price.