Home Business Research Firm: Binance Withdrawals Hit $3 Billion in 24 Hours

Research Firm: Binance Withdrawals Hit $3 Billion in 24 Hours

522
0
Research Firm

Binance, the world’s largest cryptocurrency exchange, has witnessed $3 billion in net withdrawals in the past day as suspicions of issues spread.

Binance recorded $4 billion in withdrawals on Tuesday, according to DefiLlama. Monday and Tuesday saw $1 billion in withdrawals. Binance currently has $60 billion in assets.

Blockchain analytics firm Nansen tweeted that Binance had $8.7 billion in outflows and only $5.1 billion in inflows during the past week, leaving the exchange with $3.6 billion in net withdrawals.

Some crypto specialists have attacked Binance’s Mazars audit, claiming the exchange’s bitcoin reserves are collateralized at 101%. Kraken co-founder Jesse Powell noted Binance’s bitcoin is 97% collateralized.

“The 3% ‘gap’ is due to BTC loaned to customers, through the margin or loan programs, who may have used tokens out of the report’s scope as collateral. If we take these into account (in other words, if we didn’t provide these BTC loans), we would be 101% collateralized,” a Binance official tweeted.

Former SEC chief of Internet Enforcement and crypto critic John Reed Stark said the audit doesn’t “address internal financial controls.”

Binance halting USDC withdrawals fueled the fire. CEO Changpeng Zhao claimed they stopped withdrawals to conduct a “token swap” after New York banks opened, converting BUSD to cash and USDC. Since then, withdrawals have resumed.

$570 Million Hacked From Binance Blockchain

Despite comparisons to FTX, Nansen CEO Alex Svanevik doesn’t think Binance is in peril.

“Binance has larger-than-usual withdrawals.” It’s worth keeping an eye on, but it’s different from FTX.

CZ calls the recent incident “FUD” but says it will boost the platform’s trustworthiness. “FUD brought “stress test,” which builds exchange credibility,” he tweeted.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.