Trader activity on Binance has plummeted amid an unfolding lawsuit initiated by the U.S. Commodity Futures Trading Commission (CFTC).
Recall that the regulator accused the largest crypto exchange of violating US legislation on derivatives trading.
Bitcoin trading volume on Binance has dropped to its lowest level since July 2022. In addition, users began to withdraw digital currency from exchange wallets.
Since the end of last week, more than 3,900 BTC have been sent to offline storage. About 3,400 coins left the trading floor in the last 24 hours after the lawsuit was published. This is evidenced by data from CoinGlass.
A similar situation was observed in November last year after the crash of the FTX exchange. Investors fear that Binance will suspend withdrawals.
However, the CEO of the exchange, Changpeng Zhao, announced on Twitter that Binance has no liquidity problems.
At the same time, analysts did not record a stampede of traders from Binance. The decrease in the volume of cryptocurrency is observed on all major exchanges. About 27,000 bitcoins left them in a week.
The reduction in the supply of BTC in the market eased the pressure, and the leading digital currency returned to values above $27,000 overnight.
