Binance announces return customers to crypto exchange
2022.12.14 13:37
Binance announces return customers to crypto exchange
Budrigannews.com – The head of the major cryptocurrency exchange Binance said on Wednesday that deposits were returning, a day after it stopped some stablecoin withdrawals and saw large outflows of cryptocurrencies.
According to the blockchain data company Nansen, Binance saw the largest outflow of this kind since June, with $1.9 billion withdrawn in just 24 hours on Tuesday. It later added that users had taken out $3.7 billion in cryptocurrency in the seven days leading up to Tuesday.
Due to a so-called “token swap,” Binance, the world’s largest cryptocurrency exchange, also temporarily halted USDC withdrawals.
CEO Changpeng Zhao posted on Twitter, “Things appear to have stabilized.” We did not process the most withdrawals yesterday—not even the top five.”
According to Nansen’s report to Reuters, Binance has experienced net inflows of approximately $718 million in tokens on the ethereum blockchain in the past 24 hours. When contacted for comment, Binance did not immediately respond.
Users, regulators, and policymakers have paid close attention to how crypto exchanges like Binance and its former rival FTX handle customer deposits. Both of these exchanges are now bankrupt.
On Tuesday, Binance stated that it always had “more than enough funds” to respond to requests for withdrawals. A spokesperson stated, “Binance’s capital structure is debt-free, and all user assets are backed 1:1.”
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The exchange is also under pressure from the law. Reuters reported on Monday that a lengthy criminal investigation into Binance’s compliance with U.S. anti-money laundering laws and sanctions is being delayed due to disagreements among U.S. Department of Justice prosecutors. This led to a 4% drop in Binance’s own BNB token.
Nansen Chief Alex Svanevik let CNBC know that the announcing had lead to “worry on the lookout” with financial backers remaining mindful and pulling out crypto from trades.
“FUD brought “stress test,” which in turn helps to build the credibility for exchanges that pass the test,” Zhao tweeted on Wednesday, employing the acronym “fear, uncertainty, and doubt,” which is frequently used in crypto in relation to news that is perceived as negative.
