Changpeng Zhao-led Binance has registered $1.9 billion of withdrawals in the past 24 hours. The company has now temporarily paused the withdrawals of the USDC stablecoin, a report by the blockchain data firm Nansen claimed.
Based on the Ethereum blockchain, this was the largest daily outflow over 24 hours since June 13, Reuters reported.
The move can be considered an outcome of the recent upheavals in the crypto world. Sam Bankman-Fried, the CEO of Binance's former rival and now bankrupt FTX, is now charged by US prosecutors over deluding investors. The bankruptcy of FTX may have triggered insecurities among crypto traders.
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“Binance’s withdrawals are increasing due to the growing uncertainty about its reserves report," a Nansen spokesperson told Reuters echoing the thought.
However, Changpeng Zhao, CEO of Binance, denied any uncertainties and called it 'usual business.'
“We saw some withdrawals today (over $1.14 billion). We have seen this before. Some days we have net withdrawals; some days we have net deposits," he added.
Earlier, a Binance spokesperson claimed the company had enough money to meet the withdrawal.
“User assets at Binance are all backed 1:1 and Binance’s capital structure is debt free,” the person told Reuters.
Binance is currently under pressure from the US authorities. Splits between the US Department of Justice prosecutors are causing a delay in the conclusion of a long-running criminal investigation focused on Binance's compliance with US anti-money laundering laws and sanctions.
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