Market maker Cumberland withdrew nearly 25,000 ETH from Binance and Coinbase.
The market maker seems to have bought the dip after crypto prices slumped on the back of SEC lawsuits.
Binance and Coinbase are accused of operating unregistered security exchanges in violation of U.S. laws.
Both platforms deny the allegations and say the SEC would rather regulate through enforcement action than create a clear rule book for crypto registration.
Market maker Cumberland withdrew around $46 million in Ether (ETH) from Binance and Coinbase following enforcement actions from the U.S. Securities and Exchange Commission against crypto’s largest centralized exchanges.
Cumberland deposited $85 million and $3.5 million in Circle’s USDC stablecoin into Coinbase and Binance respectively after the SEC sued Binance, LookOnChain reports said. It seems the market maker deployed capital toward ETH buys on the crypto exchange.
On June 7, Cumberland withdrew a combined 24,850 ETH from Binance and Coinbase. The market maker also withdrew other cryptocurrencies like AAVE, COMP, LINK, and SHIB. Cumberland halted trading and market-making for FireCoin possibly due to concerns that the token is an unregistered security named by the SEC.
Blockchain Intelligence company Nansen tracked 23 million in BUSD withdrawals by Cumberland. The company sent the funds to crypto trust company Paxos most likely for redemptions. Notably, Paxos was ordered to stop minting the Binance-branded stablecoin by the SEC and New York’s Department of Finance Services (NYDFS).
Companies Capitalize On Panic Surrounding Binance And Coinbase
Other institutions moved to capitalize on panic in the market after the SEC unleashed securities lawsuits against crypto exchanges Binance and Coinbase. LookOnChain reported that FBG capital sent $44 million in Tether’s USDT to Binance after news of the SEC’s lawsuit broke.
One “Smart Money” wallet withdrew over 8,000 ETH. The wallet deposited $15.9 million in USDT, buying ETH tokens at an average price of $1,808 according to LookOnChain.
LookOnChain again reported $3.35 million worth of ETH buys from a whale wallet after withdrawals in USDC and USDT from lending protocol Aave.
Indeed, ETH prices and token prices across the broader crypto market fell as news of the SEC’s suit against Binance and Coinbase broke. Prices are seemingly recovering at press time and ETH was up 3% on Wednesday.