Binance Experiences Massive BTC Withdrawals

Trader activity on Binance has dropped drastically since the US Commodity Futures Trading Commission (CFTC) initiated a lawsuit against the largest crypto exchange for allegedly violating US legislation on derivatives trading.

Bitcoin trading volume on Binance has now decreased to its lowest level since July 2022, and users have been withdrawing digital currency from the exchange wallets.

Over 3,900 BTC have been moved to offline storage in the past week, and an additional 3,400 have been withdrawn in the last 24 hours following the lawsuit.

This pattern of behavior is similar to what was observed in November last year after the FTX exchange crash, as investors fear that Binance could suspend withdrawals.