Large market makers withdrew from Coinbase and Binance almost $70 million in assets

Large market makers withdrew from Coinbase and Binance almost $70 million in assets

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Author: Robert Strickland (crypto-journalist)
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Large market makers withdrew from Coinbase and Binance almost $70 million in assets
Large market maker Cumberland withdrew nearly $70 million in assets from Coinbase and Binance crypto exchanges
Cumberland withdrew $46 million in Ethereum, 23 million BUSD, and other coins from leading crypto exchanges

Cumberland, one of the largest cryptocurrency market makers, withdrew about $70 million from the Coinbase and Binance exchanges in the last two days. The company took $46 million in Ethereum, 23 million BUSD ($23 million), and other coins after it was reported that the Securities and Exchange Commission (SEC) had sued the two exchanges.

Cumberland is a subsidiary of Chicago-based trading firm DRW, created in 2014. It provides liquidity on leading centralized and decentralized crypto exchanges.

Cumberland took about 20,000 ETH ($37 million) from the Coinbase exchange and 4.85,000 ETH ($9 million) from Binance, according to analyst service Lookonchain.

In addition to Ethereum, Cumberland withdrew other cryptocurrencies, analysts noted. Among them were tokens Axie Infinity (AXS), Shiba Inu (SHIB), Compound (COMP), Chainlink (LINK), Curve DAO (CRV), and Aave (AAVE).

A week earlier, in late May, Cumberland stopped trading Firecoin (FIL) because the SEC classified the cryptocurrency as security tokens - assets that fall under the definition of securities.

A security token is a crypto asset that represents a certain amount of ownership of something, such as part of a company. They can be issued by a business or the government, and serve the same purpose as securities (stocks).

In addition, Nansen data shows that Cumberland has withdrawn more than 23 million BUSD from Binance in the past 24 hours, crypto-journalist Colin Wu noted.

It also became known that Robinhood will review its work with some cryptocurrencies. According to a Bloomberg report, following SEC lawsuits against cryptocurrency exchanges Binance and Coinbase on June 5 and 6, in which the regulator named several cryptocurrencies as securities, Robinhood may change its product offerings.

Robinhood gives users access to 18 cryptocurrencies. These include Solana (SOL), Cardano (ADA), and Polygon (MATIC), which have been called unregistered securities by the SEC in lawsuits against cryptocurrency exchanges.

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