Investors have pulled around $1.43 billion from the crypto exchange Binance and its U.S. affiliate as of 11 a.m. ET (1500 GMT) on Tuesday, data firm Nansen said, a day after a top U.S. regulator sued both exchanges.
Binance saw net outflows of $1.34 billion of crypto tokens on the ethereum blockchain, with its U.S. affiliate, Binance.US, registering net outflows of $70.8 million, Nansen tweeted.
Neither exchange immediately responded to a request for comment.
The U.S. Securities and Exchange Commission on Monday sued Binance, its CEO Changpeng Zhao and the operator of Binance.US over what it called a “web of deception” to evade U.S. laws.
The SEC alleged in 13 charges that Binance artificially inflated its trading volumes, diverted customer funds, failed to restrict U.S. customers from its platform and misled investors about its market surveillance controls.
The lawsuit, which cited a number of practices first reported by Reuters in a series of investigations into the exchange, marks the most significant step against a crypto company by the SEC in its sweeping crackdown on the industry this year.
In statements on Monday, Binance said it had been cooperating with the SEC’s probes and had “worked hard to answer their questions and address their concerns”, including by trying to reach a negotiated settlement. “We intend to defend our platform vigorously,” it said in a blog.