Crypto traders using Binance US withdrew a substantial amount of $78.48 million on June 7 from the embattled platform, as per data from DeFillama. This comes despite previous assurances that their funds were secure. The total value of tokens held by Binance.US on the Ethereum chain is reported to be $321 million, indicating that the outflows accounted for approximately 24% of the current Total Value Locked (TVL).
DeFillama data revealed that Binance US experienced outflows of $506,850 on June 5, the same day it was sued by the U.S. Securities and Exchange Commission (SEC) for violating federal securities laws and putting investors at risk. The withdrawal trend continued on June 6, with $7.941 million in outflows. However, the outflows skyrocketed to $78.48 million following reports that the SEC sought a restraining order to freeze the assets of Binance.US’s parent company, BAM, and demanded the return of customers’ funds and crypto assets on the platform. Corroborating the outflows report, blockchain analytical firm Nansen tweeted on June 7 that Binance US recorded a net outflow of $64.5 million within an hour. This significant withdrawal was primarily driven by two large Polygon’s MATIC withdrawals, amounting to approximately $62 million.
Despite the situation, Binance US remains steadfast in its claim that funds are safe. In a statement released on June 6, the platform asserted its full operational status, stating that withdrawals and deposits were functioning optimally despite the SEC’s attempt to freeze its assets. Binance US described the SEC’s preliminary injunction as “unwarranted,” suggesting that it was motivated by the Commission’s desire to gain an “advantage in litigation” rather than genuine concern for customer asset safety.
Furthermore, Binance US stated that the SEC filed the injunction despite the company’s assurance that user funds were secure. The platform highlighted its ongoing engagement with the SEC staff, stating that it had addressed the staff’s concerns about customer asset safety during extensive discussions over the past week.
Meanwhile, Binance US reiterated its commitment to defending itself in court.