Nansen reports Binance suffered $69M in net outflows in one hour following SEC charge.

Cryptocurrency traders are withdrawing funds from the crypto exchange Binance after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against the company and its CEO, Changpeng “CZ” Zhao, for violating federal securities law on Monday.

Blockchain data from the intelligence platform Nansen shows that the exchange experienced a net outflow of around $69 million in the past hour.

During this period, traders withdrew approximately $125 million in digital assets, while only depositing $56 million, excluding bitcoin (BTC) transfers.

The SEC lawsuit alleges that Binance, the world’s largest crypto exchange in terms of trading volume, violated multiple federal securities laws by offering unregistered crypto securities, including BNB and BUSD tokens, to the general public and allowing for commingling of customer funds.

The lawsuit also alleges that CZ, the CEO of the company, secretly controlled Binance.US, a separate entity operating in the U.S., and that a CZ-owned entity inflated Binance.US’s trading volume.

Read more: SEC Sues Crypto Exchange Binance, CEO Changpeng Zhao Over Multiple Securities Violation Allegations

Edited by Aoyon Ashraf.