The crypto market maker Cumberland spent a whopping $90 million to buy the bottom after the U.S. Securities and Exchange Commission (SEC) brought enforcement actions against crypto giants Coinbase and Binance. On-chain data showed that the market maker has withdrawn over $46 million worth of ETH over the past 24 hours.
The blockchain analytics firm Lookonchain took to Twitter earlier today to share Cumberland’s recent transactions:
It seems that #Cumberland bought from the bottom after the #SEC sued #Binance and #Coinbase news reports.
— Lookonchain (@lookonchain) June 7, 2023
We noticed Cumberland withdrew 20,000 $ETH($37M) from #Coinbase and 4,850 $ETH($9M) from #Binance.
He also withdrew $AXS, $SHIB, $COMP, $LINK, $CRV, $AAVE, and $RNDR. pic.twitter.com/cpYzQd5C7f
According to on-chain data gathered by Lookonchain, Cumberland bought the dip after Coinbase and Binance were sued by the securities regulator. The Chicago-based market maker withdrew 20,000 ETH worth $37 million from Coinbase and another 4850 ETH worth $9 million from Binance since the SEC’s enforcement actions began.
Cumberland has also withdrawn several altcoins, including Axie Infinity token (AXS), Compound (COMP), Chainlink (LINK), CurveDAO Token (CRV), AAVE, Render Token (RNDR), and Shiba Inu (SHIB). The market-making firm withdrew a total of 90 million USDC from Circle, of which 85 million USDC was deposited to Coinbase and 3.5 million USDC was sent to Binance.
Cumberland’s strategic moves came just a day after Lookonchain reported that the market maker had withdrawn 67.9 million USDC from Circle and deposited 67.1 million USDC to Coinbase. The on-chain analytics tool Nansen revealed recently that the top two wallets in terms of net withdrawals in the aftermath of the SEC’s lawsuit against Binance, belonged to Cumberland.
Data from Nansen.ai showed that wallets associated with Cumberland withdrew $20.1 million worth of ETH from Coinbase and 19.5 million BUSD stablecoins from Binance on June 6, 2023. Meanwhile, fellow institutional investor Brevan Howard Digital’s wallet made the third largest withdrawal, exceeding $17.9 million.
Lookonchain reported that the FUD induced by the SEC’s recent enforcement actions prompted institutional investors, crypto whales, and smart money to buy the dip. This included FalconX which withdrew 37 million USDC from Circle and deposited 29.5 million USDC into Binance.
