The Securities and Exchange Commission (SEC) has filed a lawsuit against Binance and its founder Changpeng Zhao for breaching securities regulations and commingling billions of dollars worth of investors' funds.

Despite this, a number of crypto investors have expressed support for the exchange, with digital assets management firm FBG Capital depositing 44 million USDT in Binance to mitigate potential liquidity risks.

However, the SEC's legal action has led to notable outflows from the exchange, with investors pulling out over $1 billion worth of crypto assets from Binance against $546 million in deposits. The crypto market sentiment has returned to "fear mode" following the SEC's action, but experts encourage investors to "be greedy when others are fearful".