#Coin On Users Withdraw Cryptocurrency Following US Regulatory Authority Lawsuit

03/28/2023 19:29 • Blockchain Buzz • 146 views

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 As of the time of press release, canny traders who are considered “smart money” operators by Nansen have also withdrawn $9 million from Binance in the past 24 hours.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

Introduction

Recently, the cryptocurrency industry in the United States received a major jolt when the US regulatory authority filed a lawsuit against Coin On and its founder Zhao Changpeng. This news quickly spread across the globe, resulting in a large number of Coin On users withdrawing their digital assets from the exchange. In this article, we will discuss how the developments in the industry led to this unprecedented situation.

The Regulatory Authority’s Role

The regulatory authority’s role in monitoring cryptocurrency operations has been acknowledged for some time now. In recent years, regulatory bodies around the world have been trying to bring cryptocurrency exchanges under their ambit to prevent illegal activities such as money laundering and illegal trading. When the US regulatory authority filed the lawsuit against Coin On, many other cryptocurrency exchange operators took notice.

Coin On Users React

Coin On users were among the first to react to the news of the regulatory authority’s lawsuit. They quickly began withdrawing their digital assets from the exchange. Blockchain analysis companies tracked this trend in real-time and found that in the past 24 hours, the net outflow of Coin On Ethereum has reached $400 million. This is significantly higher in comparison to the net flow over the past seven days, which was $2 billion.

Traders on the Move

Along with Coin On users, the canny traders who are considered “smart money” by Nansen also withdrew $9 million from Binance in the past 24 hours. This suggests that cryptocurrency traders are closely monitoring the situation and are proactively taking steps to safeguard their digital assets.

Coin On’s Founder Zhao Changpeng Responds

Coin On’s founder Zhao Changpeng has responded to the regulatory body’s lawsuit by stating that he “disagrees” with the allegations. He further said that the “Coin On Team is committed to following appropriate legal compliance practices.”

Conclusion

The regulatory authority’s lawsuit against Coin On and its subsequent impact on cryptocurrency trading has highlighted the need for greater transparency and accountability in the industry. As cryptocurrency exchanges continue to evolve and the regulatory environment becomes more complex, it is essential that operators remain vigilant to prevent illegal activities that can damage the credibility of the industry.

FAQs

1. What is the role of regulatory authorities in the cryptocurrency industry?
Ans: Regulatory authorities monitor and regulate cryptocurrency operations to prevent illegal activities such as money laundering and illegal trading.
2. How did Coin On users react to the regulatory authority’s lawsuit?
Ans: Coin On users quickly began withdrawing their digital assets from the exchange.
3. What is the impact of the regulatory authority’s lawsuit on cryptocurrency trading?
Ans: The impact of the lawsuit and subsequent developments highlight the need for greater transparency and accountability in the industry.
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