Kenne Michael 
According to on-chain data, Binance, the largest cryptocurrency exchange in the world, experienced a negative netflow of $623 million on June 5 following a new lawsuit filed by the US Securities and Exchange Commission (SEC).
This withdrawal level was reminiscent of the banking crisis in March of the same year, although it remains within the normal range historically. Binance has previously seen negative netflows of up to $1 billion during the same period due to various fear, uncertainty, doubt (FUD) events, and rumors of bank runs.
Nansen, a blockchain analysis firm, reported that netflow to Binance turned positive on Ethereum earlier today, with approximately $75 million in positive netflow within a few hours.
Binance’s native token, BNB, is trading at $277, reflecting an almost 8% decline in the past 24 hours, according to CoinMarketCap. Bitcoin and Ethereum have also experienced declines of nearly 4% and 3% respectively.
Binance’s reserve wallets currently hold approximately $55 billion worth of cryptocurrencies. The exchange has been facing intense scrutiny from US regulators, including the SEC, the Department of Justice (DoJ), the Commodity Futures Trading Commission (CFTC), and the Internal Revenue Service (IRS), in addition to the SEC lawsuit, which alleges 13 charges against Binance entities and their founder Changpeng Zhao for operating unregistered exchanges and misrepresenting trading controls and oversight on the Binance.US platform.
Recent reports revealed that a senior Binance executive controlled five bank accounts belonging to the exchange’s independent US affiliate, including one that held funds from American customers. Following this report, the SEC filed a lawsuit against Binance entities on the same charges. Records from previous years indicate that the now-defunct Silvergate Bank allowed Guangying Chen, a close associate of Changpeng Zhao, to control these accounts between 2019 and 2020.