In the last 24 hours, Whale Alert, a renowned cryptocurrency tracking platform, has reported a sizable movement of 232 million XRP tokens. A majority of these tokens were withdrawn from the Binance exchange and sent to an unidentified address, as reported by Whale Alert.
Possible Reason for this Transfer
The Commodity Futures Trading Commission (CFTC) this week brought charges against Binance and its CEO, Changpeng Zhao, amidst reports of $2 billion in crypto withdrawals from the exchange.
And, just a few days after this move from CFTC, Whale Alert detected two transactions originating from the Binance exchange, totaling 62 million XRP, worth approximately $32.7 million. The first transaction was for 20,752,375 XRP, valued at $11,139,239, and the second was for 41,140,453 XRP, valued at $21,608,659.
Meanwhile, due to this transfer, the XRP army has rejoiced as XRP has finally regained its $0.5 level. There is an approximate eight-hour gap between these two transfers. Furthermore, recent reports indicate that there has been a considerable increase in users withdrawing funds from Binance, with over $2 billion worth of crypto leaving the Ethereum chain.
According to a renowned analytics firm, Nansen, it has been reported that users began withdrawing funds from their crypto wallets last week. However, following the announcement of the CFTC’s lawsuit against Binance and its leader, CZ, on Monday, the rate of withdrawals has seen a sharp increase.
About the CFTC Lawsuit
The U.S. Commodity Futures Trading Commission (CFTC) has claimed that Binance has broken certain regulations in regard to trading and that CZ, the CEO, had failed to register his own trading activities with the regulator. On Tuesday, reports emerged that CZ had connections to approximately 300 proprietary accounts utilized for trading, as well as two individual accounts, as per documents submitted by the CFTC in this lawsuit.