WSJ reports about mass withdrawals of cryptocurrency from Binance

The withdrawal may be related to the flow of FUD toward the exchange by the mainstream media

13.12.2022 - 13:45

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2 min

The world’s largest cryptocurrency exchange by trading volume saw withdrawals jump at the start of the week.

Traders are on edge following a series of collapses this year that hit two cryptocurrencies, a major crypto hedge fund and most recently, the exchange FTX. Concerns over Binance have amplified following its recent release of a narrow “proof of reserve report” that left investors with questions about the state of its finances.

Net outflows, the difference between the value of assets arriving and leaving the exchange, totaled $1.6 billion over the prior 24 hours as of about 1:30 a.m. ET Tuesday, according to blockchain analytics firm Nansen. The snapshot measures withdrawals of the cryptocurrency ether and other tokens on the Ethereum blockchain.

Net outflows over the week prior stood at $1.9 billion. That was less than the $2.3 billion pulled in the week that followed FTX's implosion.

"People deposit and withdraw assets everyday for a variety of different reasons," said a Binance spokesman. The company operates in a way to "ensure that we always have more than enough funds to fulfill withdrawal requests," he said.

Changpeng Zhao, Binance’s chief executive, said on Twitter that the exchange has seen an increase in withdrawals of USDC, a so-called stablecoin whose value is pegged to the dollar. Mr. Zhao said Binance expects to process all of those transactions when its New York bank opens in a few hours.

There's a spike in withdrawals from Binance in the last 24H with -$1.6B* netflowIts 7-day netflow is now at -$1.9B, currently this is less than the -$2.3B weekly netflow Binance has processed in the wake of FTX collapse*ETH & ERC20 tokens only pic.twitter.com/pwbeQXtDxK— Nansen 🧭 (@nansen_ai) December" class="redactor-linkify-object">https://twitter.com/nansen_ai/status/1602552164882... 13, 2022