The world’s largest cryptocurrency exchange, Binance, reported $1.9 billion in withdrawals from its depositors in the past 24 hours, blockchain analytics firm Nansen reported.
At the same time, the platform announced that it had “temporarily suspended” withdrawals of the stablecoin USDC, Reuters reported.
Binance, whose dominance in the cryptocurrency sector was cemented by the bankruptcy of its rival FTX, last week tweeted the so-called evidentiary report on its reserves prepared by accounting firm Mazars. The report shows that exchange-held bitcoins exceeded customer deposits in a single day in November.
The $1.9 billion withdrawal was the largest daily outflow from the exchange since at least June and accounted for most of the $2.2 billion withdrawn over the past seven days in the form of the cryptocurrency ether.
“Withdrawals from Binance are increasing due to growing uncertainty about the reserve ratio,” a Nansen spokesperson explained.
However, a spokesperson for the cryptocurrency exchange said, “People deposit and withdraw assets every day for various reasons. User assets on Binance are guaranteed 1:1 (one-to-one) and the capital structure is free. of debts”. According to him, “we always have more than enough funds to fulfill withdrawal requests.”
Cryptocurrency portal Coindesk previously reported that Binance reported an outflow of $902 million yesterday.
The stock market is already under pressure from the authorities. Disagreements between US Justice Department prosecutors are delaying the conclusion of a longstanding criminal investigation into Binance focused on compliance with US anti-money laundering laws and sanctions.
The cryptocurrency trading platform’s reserve report sent the BNB token price down nearly 4%, investors said.
Today, exchange CEO Changpeng Zhao tweeted that USDC stablecoin withdrawals have been suspended due to an interest spike.
The USDC stablecoin, whose value is tied to the US dollar, can be exchanged for two other crypto tokens – “Paxos Standard” (Paxos Standard) and “Binance USD” (Binance USD) – for dollars at a New York bank Zhao said underlined. “The banks will be closed for a few more hours. We expect the situation to normalize by then.”
