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- 1 The leading U.S. crypto exchange Coinbase, saw a significant inflow of cryptocurrencies.
- 2 Data from on-chain data aggregator CryptoQuant suggests that the U.S. crypto exchange received 12,000 Bitcoin (BTC).
The cryptocurrency industry recently saw a notable incident when a major cryptocurrency exchange and CEO witnessed enforcement actions. These enforcement actions were carried out by the United States financial regulators, in the wake of increased scrutiny over the space. Amid all this chaos, the leading U.S. crypto exchange, Coinbase, saw a significant inflow of cryptocurrencies.
Data on cryptocurrency inflow suggests that Coinbase was at the forefront of receiving the benefits of regulatory actions against the biggest cryptocurrency exchange in the world, Binance. After the news of actions against the company and executive, the investors and crypto users immediately started moving their funds.
Coinbase benefitted from its position among the leading crypto exchanges in the industry and received a huge chunk of the assets outflow. Data from on-chain data aggregator CryptoQuant suggests that the U.S. crypto exchange received 12,000 Bitcoin (BTC) while 5,000 BTC took exit from the biggest cryptocurrency exchange.
The world’s leading cryptocurrency exchange experienced a significant shift in its financial landscape, following the enforcement action taken by the United States Department of Justice (DOJ).
The DOJ’s legal pursuit accused the exchange of engaging in conspiracy, operating an unlicensed money-transmitting business, violating Know-Your-Customers and anti-money laundering regulations, and breaching the International Emergency Economic Powers Act. The regulatory pressure led to a demand for a substantial $4.3 billion settlement from the exchange.
Within the initial 12 hours leading up to the legal crackdown, Nansen reported on the X app that there was no apparent “mass exodus of funds.” However, this stability was short-lived as the crypto exchange witnessed a considerable outflow from its reserves, totaling a staggering $2.2 billion within a 24-hour period.
The rapid withdrawal of funds signaled a shift in sentiment, indicating that retail investors were swiftly pulling their assets from the exchange.
The Crypto Exchange Found itself Amid the Whirl
In response to the mounting legal challenges, the crypto company founder promptly admitted guilt to the money laundering charge and took the decisive step of stepping down from his role as CEO.
The abrupt resignation of the executive, who is also a prominent figure in the cryptocurrency industry, added further uncertainty to the company’s future leadership and operational strategies.
The enforcement action against crypto exchange marks another regulatory hurdle for the cryptocurrency market, highlighting the increasing scrutiny major exchanges face. The DOJ’s insistence on a substantial settlement underscores the gravity of the alleged violations, causing ripple effects across the broader crypto landscape.
As the legal proceedings unfold, the industry will keenly observe the impact on the market position of the crypto company and the broader regulatory landscape for cryptocurrency exchanges.
Along with the inflows bolstering Coinbase’s reserves, COIN stock price saw the growth too. The stock price started rising soon after the incident and grew continuously. COIN stock is currently trading at $115, marking an increase of over 5% in the last intraday trading session.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
