Binance sees withdrawals of $1.9 billion in last 24 hours, data firm Nansen says

The $1.9 billion figure marks the largest daily outflow since at least June, the Nansen data showed.

December 14, 2022 11:58 am | Updated 09:54 pm IST

Representation of cryptocurrency Binance Coin, the native token of the cryptocurrency exchange, is seen in this illustration

Representation of cryptocurrency Binance Coin, the native token of the cryptocurrency exchange, is seen in this illustration | Photo Credit: Dado Ruvic

Binance, the world's biggest crypto exchange, saw withdrawals of $1.9 billion in the last 24 hours, blockchain data firm Nansen said on Tuesday, as the platform said it had "temporarily paused" withdrawals of the USDC stablecoin.

(For insights on emerging themes at the intersection of technology, business and policy, subscribe to our tech newsletter Today’s Cache.)

Binance, whose dominance of crypto was cemented by the bankruptcy of rival exchange FTX, last week tweeted a so-called proof-of-reserves report by audit firm Mazars. The report showed its holdings of bitcoin exceeded customer deposits on a single day in November.

The $1.9 billion figure marks the largest daily outflow since at least June, the Nansen data showed, and accounted for the majority of the $2.2 billion in etheruem-based withdrawals during the last seven days.

"Binance's withdrawals are increasing due to the growing uncertainty about its reserves report," a Nansen spokesperson said.

Binance did not immediately respond to requests for comment. Crypto news outlet CoinDesk reported earlier that Binance saw outflows of $902 million on Monday.

The exchange is already under pressure from authorities. Splits between U.S. Department of Justice prosecutors are delaying the conclusion of a long-running criminal investigation focused on Binance's compliance with U.S. anti-money laundering laws and sanctions, Reuters reported on Monday.

The report sparked a drop of almost 4% in Binance's BNB token, traders told Reuters.

"TOKEN SWAP"

The Nansen data came as Binance halted withdrawals of USDC, citing a "token swap" - where digital token holders exchange their crypto coins, typically over different blockchains.

"On USDC, we have seen an increase in withdrawals," Binance's chief executive Changpeng Zhao tweeted.

Binance said in September it would automatically convert user balances and new deposits of USD Coin and two other stablecoins into its own stablecoin, Binance USD.

Zhao said on Tuesday swapping USDC with two other tokens - Paxos Standard and Binance USD - requires using traditional dollars at a bank in New York. "The banks are not open for another few hours. We expect the situation will be restored when the banks open."

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.