Cryptocurrency exchanges continue to feel the after effects of the FTX collapse. Crypto investors are fearful. Rumors are circulating that the US DOJ wants to file criminal charges against Binance’s CEO CZ, though nothing has been filed. “FUD” is what Changpeng Zhao calls it but the damage is done as fearful customers made $1.9-Billion-dollars withdrawals in 24 hours from the exchange.
The massive withdrawal total was first reported by Nansen, a blockchain data firm.
Not the time a Billion withdrawn in a day
This is not the first time Binance has seen such a massive outflow however. In June, such stifling numbers were also reported in a daily withdrawals analysis.
The increase of people moving their money from the crypto-exchange could also be in part to the lack of complete clarity on reserves and liability, in simple format. However, Binance is preparing this.
Crypto investors are extremely interested in this information from all exchanges currently as it is said the FTX collapse would never have happened, had consumers been attentive to this data.
Binance Stands Strong
“People deposit and withdraw assets everyday for a variety of different reasons. User assets at Binance are all backed 1:1 and Binance’s capital structure is debt free,” said a spokesperson for Binance on the matter.
Then re-confirmed, “We always have more than enough funds to fulfill withdrawal requests.”
The ripple effects of today will be felt by Binance going forward but it does not mean a collapse by any means.
Just last week Mazars, global financial audit, tax and advisory firm, reviewed the leading crypto-exchange. And they confirmed Binance’s Bitcoin reserve of 600,000 is over-collateralized. In layman’s terms, Mazar’s audit confirms more than enough to cover $10.2-Billon-dollars of liability — and that’s just 1 coin
Changpeng Zhao really has to fight the FUD after causing the collapse of FTX. The same claims laid upon SBF, a man he once pointed out as a fraud and exposed, are now being used against his company. However, this could make the top exchange much stronger if it survives.