Per recent data by Nansen, Coinbase, an American cryptocurrency exchange, has experienced a significant surge in user withdrawals. According to data from crypto analytics firm Nansen, Coinbase saw net outflows of around $600 million within a 24-hour period. This massive withdrawal appears to be a reaction to the recent decision by the U.S. Securities and Exchange Commission (SEC) to sue the exchange. The SEC has alleged that Coinbase violated federal securities laws.

The data suggests that the withdrawals occurred in two waves. The first wave happened on Monday, following the lawsuit against Binance, which saw net outflows of about $450 million within an hour. The withdrawals then stabilized but picked up again on Tuesday following the suit against Coinbase.

Interestingly, the withdrawal surge on Binance has been even larger following the regulatory actions. Net outflows surpassed $700 million on Monday, according to data compiled by 21Shares. This trend continued on Tuesday, with net outflows surpassing $1.2 billion over the past 24 hours, according to Nansen data.

The magnitude of the outflows aligns with prior stressful events in the crypto industry, including the crypto banking crisis in March and the collapse of Sam Bankman-Fried’s FTX exchange late last year. These events have shaken investor confidence in centralized exchanges.