Binance Reserves Remain Solid Despite SEC Lawsuit

1. Binance’s reserves are still at $61 billion despite massive FUD caused by the SEC lawsuit.
2. Coinbase’s user confidence also remains strong despite getting sued by the SEC as well.
3. CZ assured Binance international’s funds will be liquid should Binance US funds be freezed.

The recent lawsuit filed by the US Securities and Exchange Commission (SEC) against Binance and Changpeng Zhao (CZ) appears to anticlimactic at best, as the news isn’t causing as much fear, uncertainty, and doubt (FUD) as others expect.

To be fair, there’s already a mass exodus of crypto investors who don’t want to experience a repeat of FTX when it went bust. However, recent data show that Binance’s reserves remain stable and healthy.

It is impressive how:
-it took 10 days for FTX to fully go down from vague balance sheet rumors
-while Binance wallets barely budged after an avalanche of FUD where government agencies claim they commingled customer funds.

Different kind of users? pic.twitter.com/qfU4WTheho

— Tree of Alpha (@Tree_of_Alpha) June 7, 2023

As the graphs show, Binance’s reserves are sitting at around $61 billion. On Monday alone, during the initial quake of the SEC lawsuit against Binance, users have already withdrawn at least $1 billion, although there were at least $500 million worth of deposits at the same time.

There aren’t any latest figures yet as to how much have been withdrawn from Binance, although various sources are saying that investors and well-known traders are buying the dips instead of selling.

CZ replied to the tweet, saying that this is because Binance has earned the trust of its customers “through a long history of decisions and actions taken to protect users.”

Coinbase appears to be seeing a similar tale, as the SEC’s lawsuit against the exchange is putting little dent on user confidence. This may be because both Coinbase and Binance — two of the largest crypto exchanges in the world — have expressed that they will fight the SEC in court and that they have no plans of backing down.

The SEC’s request to freeze all assets held by Binance US has yet to get the approval of the court, although others are alleging that the securities regulator will get the green light. If it happens, CZ assured that all assets held by Binance will be liquid and ready for customer withdrawals at any time.

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