13 Dec 2022
Binance CEO claims “business as usual” despite rising outflows
On Tuesday, the Hong Kong-based blockchain analytics platform Nansen Ltd. announced that $3 billion was withdrawn from the unlisted cryptocurrency exchange Binance Holdings Inc. in the preceding 24 hours.
Nansen stated that despite the withdrawals, Binance still has $62.5 billion in assets.
During the business day, Shanghai-based Binance recorded about $1.14 billion in withdrawals, according to a tweet from CZ, the CEO of Binance.
“We have seen this before,” CZ said. “Some days we have net withdrawals; some days we have net deposits. Business as usual for us.”
CZ advised “stress testing” withdrawals “on a rotating basis” across all cryptocurrency exchanges.
Additionally, on December 13, Binance disclosed that a token swap had temporarily halted withdrawals of USDC, a stablecoin pegged to the dollar. The business emphasized that withdrawals of USDT and BUSD were unaffected.
According to Binance CEO Changpeng Zhao, there have been significant withdrawals of the stablecoin from the exchange. He asserted that the stablecoin would be back in circulation once the banks in New York opened, though.
As soon as investors learned about the proof-of-reserves (PoR), chaos ensued. The collapse of FTX and the subsequent arrest of its former CEO, Sam Bankman-Fried, have put the cryptocurrency community on edge due to worries about further industry contagion.
Binance refuted A Reuters report that the US Department of Justice is considering filing criminal charges against Binance on Monday.
Disclaimer: Nothing on this site should be construed as a financial investment recommendation. It’s important to understand that investing is a high-risk activity. Investments expose money to potential loss.
