After the SEC‘s lawsuit against the cryptocurrency exchange Binance, the market fell noticeably, and large whales, institutions and venture firms took advantage, according to Lookonchain analysts.
2/ After the news of #SEC suing #Binance, Cumberland withdrew 67.9M $USDC from #Circle and deposited 67.1M $USDC to #Coinbase.https://t.co/DSxYHpIAQ7
FalconX received 37M $USDC from #Circle and deposited 29.5M $USDC to #Binance.https://t.co/z1i9GAbzi5 pic.twitter.com/uqOapBLc4m
— Lookonchain (@lookonchain) June 6, 2023
Soon after those claims were made public, Cumberland withdrew $69.7 million from Circle, the issuer of the stablecoin USDC, and then deposited the funds on Coinbase.
The FalconX institutional trading platform also received $37 million from Circle, and then moved $29.5 million to Binance.
Venture firm FBG Capital contributed $44 million to Binance immediately after the news of the SEC’s lawsuits.
Prominent trader known as SmartMoney also sent a deposit of $15.9 million to Binance. Later he withdrew 8,800 ETH, which he had bought at an average price of $1,808.
At the same time, a major whale withdrew 703,871 USDC and 2.64 million USDT from the DeFi protocol Aave, while buying 1,848 ETH at $1,810.
To show support, NFT whale machibigbrother.eth transferred all of its tokens from the Borde Ape Yacht Club collection worth 2,900 ETH (~$5.2 million) to Binance.
As reported on June 5, 2023, the SEC sued the cryptocurrency exchange Binance and its CEO Changpeng Zhao. The regulator brought 13 charges, including allegations of selling unregistered securities. In light of the proceedings, the BNB token fell nearly 7%, dragging other assets lower.
Later there were reports that the Commission’s claims were similar to the charges brought by the agency against the beleaguered crypto exchange FTX and its subsidiary Alameda Research.