US investors are cashing out from the world’s top crypto exchanges Binance, Coinbase: Here’s why

US investors are cashing out from the world’s top crypto exchanges Binance, Coinbase: Here’s why

Dubai: In the past few days, back-to-back US regulatory lawsuits against two of the world’s biggest crypto exchanges, Binance and Coinbase, have resulted in investors worldwide rushing to pull out their crypto investments. Here’s what you need to know about this latest turmoil to hit the industry. In a dramatic escalation of a crackdown on the industry, the US operations of global crypto exchange Binance was hit with more than $1.3 billion (Dh4.77 billion) in customer withdrawals after the US Securities and Exchange Commission (SEC) filed a lawsuit against them on Monday. The top US securities regulator also sued US-based platform Coinbase a day later, the second lawsuit in two days against a major crypto exchange. Coinbase suffered a similar-sized net loss of $1.3 billion in customer deposits after the lawsuit, as per initial estimates from US data analytics firm Nansen. “The moves by the SEC mark a serious escalation of the closely-followed regulator’s campaign to rein in an industry that has for years operated outside regulation,” opined Brian Deshell, a long-time UAE-based cryptocurrency trader and market analyst. “And if the SEC prevails in either case, be it in its latest lawsuits against either Binance or Coinbase, this could dramatically