Binance appears to be suffering from a decline in liquidity. A report from crypto analytics firm Nansen, indicates that Binance had net withdrawals of more than $3.6 billion from Dec. 7 to Dec. 13.

Binance gross outflows have been approximately $8.8 billion, while gross inflows have been around $5.1 billion.

In addition, while Binance saw more than $2 billion in daily net inflows of Ethereum ERC-20 tokens back in November, that’s reversed into outflows of over $1 billion from Dec. 12-13.

Binance ERC-20 Token Flow and Balance. Source: Nansen Analytics

According to Nansen technician Andrew Thurman, the drop in liquidity may have been partially caused by large market makers exiting the exchange. Thurman’s research suggested that Wintermute withdrew over $300 million on Dec. 11-12 and Jump Finance redeemed over $30 million in Binance USD (BUSD) from Dec. 12-13.

Binance is the world’s largest cryptocurrency exchange by volume, but it came under pressure on Dec. 12 when a report claimed that the U.S. Department of Justice is considering charging its executives with financial crimes. The Department of Justice has not released an official statement about the matter, but Binance has claimed that the report is “wrong.”

In response to the outflows, Binance CEO Changpeng “CZ” Zhao has claimed that the event may be good for the exchange, as it will serve as a “stress test” that will prove Binance is solvent:

Despite this positive attitude, Binance’s own educational resources state that low liquidity can lead to widening bid-ask spreads and greater slippage, both of which can be negative for customers.