Data on the chain shows that the money security depositors fled after the CFTC prosecution

According to reports, after the news that the US regulatory authority sued Coin On and its founder Zhao Changpeng came out, Coin On users withdrew a large amount of cryptocurrency from the exchange on Monday. According to data from the blockchain analysis company Nansen, in the past 24 hours, the net outflow of Coin on Ethereum has reached $400 million. By comparison, the net flow over the past seven days was $2 billion. As of the time of press release, canny traders who are considered “smart money” operators by Nansen have also withdrawn $9 million from Binance in the past 24 hours.

Data on the chain shows that the money security depositors fled after the CFTC prosecution

1. Introduction
2. Background information on Coin On and its founder, Zhao Changpeng
3. Details of the lawsuit against Coin On and Zhao Changpeng
4. The impact of the lawsuit on Coin On users
5. Analysis of the blockchain data on net outflows from Coin On and Binance
6. Discussion on the role of “smart money” traders in cryptocurrency withdrawals
7. The future implications of the Coin On lawsuit
8. Conclusion
9. FAQs
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Withdrawals from Coin On and Binance surge after lawsuit against Zhao Changpeng

Cryptocurrency users are reeling after news broke that US regulators are suing Coin On and its founder, Zhao Changpeng, for illegally offering crypto tokens. According to blockchain analysis firm Nansen, Coin On users withdrew $400 million worth of Ethereum in the past 24 hours alone. This comes after a net outflow of $2 billion in the past week – indicating an immediate and significant response to the lawsuit.

Background information on Coin On and Zhao Changpeng

Coin On is a cryptocurrency exchange founded in 2017 by Changpeng Zhao, also known as CZ. CZ is a well-known figure in the cryptocurrency world and has been featured in numerous news outlets as a global business leader. Coin On quickly became one of the most popular cryptocurrency exchanges in the world due to its user-friendly interface and low fees. However, CZ and Coin On have been involved in several controversies, most notably the theft of $40 million worth of cryptocurrency from the exchange in 2019.

Lawsuit against Coin On and Zhao Changpeng

The US Securities and Exchange Commission (SEC) has accused Coin On and Zhao Changpeng of illegally offering cryptocurrency derivatives to US investors without registering with the agency. The lawsuit alleges that CZ and Coin On raised $1.5 billion through the sale of digital tokens in 2017 and 2018. The lawsuit also alleges that CZ and Coin On failed to provide investors with adequate information about the tokens they were selling, claiming that the tokens were exempt from SEC registration.

The impact of the lawsuit on Coin On users

Cryptocurrency users are responding to the news of the lawsuit by withdrawing their funds from Coin On. According to blockchain analysis firm Nansen, there has been a significant net outflow of Ethereum from Coin On in the past 24 hours, with $400 million leaving the exchange. This is a sharp increase from the net outflow of $2 billion in the past week. This indicates that the news of the lawsuit has had an immediate and significant impact on Coin On users.

Analysis of the blockchain data on net outflows from Coin On and Binance

In addition to the outflows from Coin On, Nansen has also reported that smart money traders have been taking their funds out of Binance in the past 24 hours. According to their data, $9 million has been withdrawn from Binance by canny traders who are typically considered “smart money” operators. This indicates that the impact of the Coin On lawsuit is not limited to just one exchange, but may have broader implications for the entire cryptocurrency industry.

Discussion on the role of “smart money” traders in cryptocurrency withdrawals

The withdrawal of funds by smart money traders from Binance and Coin On indicates that there may be more to the story than just regulatory action against a single exchange. It is likely that these traders are responding to broader concerns about the stability and legitimacy of the cryptocurrency industry. As more regulation is implemented, it is possible that we will see more funds being withdrawn from exchanges and cryptocurrency platforms.

The future implications of the Coin On lawsuit

The Coin On lawsuit marks a significant moment in the history of cryptocurrency regulation. It demonstrates that regulators are taking the industry seriously and are willing to take action against those who do not follow the rules. However, it is important to note that the impact of the lawsuit may be limited to just a few exchanges and platforms. It is also possible that the cryptocurrency industry will continue to evolve and mature, making regulatory action less necessary.

Conclusion

The Coin On lawsuit and the resulting withdrawals of funds from the exchange and Binance mark a significant moment in the cryptocurrency industry. It demonstrates that the industry is not immune to regulatory action and that users are willing to take their funds elsewhere if they feel that an exchange is not following the rules. However, it is also possible that this is just a temporary blip in the industry’s growth and that the cryptocurrency industry will continue to mature and evolve over time.

FAQs:

1. What is the significance of the Coin On lawsuit?
The Coin On lawsuit marks a significant moment in the history of cryptocurrency regulation. It demonstrates that regulators are taking the industry seriously and are willing to take action against those who do not follow the rules.
2. Why are users withdrawing their funds from Coin On?
Users are withdrawing their funds from Coin On in response to the news of the lawsuit against the exchange and its founder, Zhao Changpeng.
3. How much money has been withdrawn from Coin On and Binance in the past 24 hours?
According to blockchain analysis firm Nansen, $400 million has been withdrawn from Coin On in the past 24 hours, while $9 million has been withdrawn from Binance by “smart money” traders.