December 17, 2022
2 mins read

Customers withdrew $1.14 bn from Binance

This would differentiate it from FTX, which got into trouble by lending customer funds to its sibling trading firm Alameda Research, reports South China Morning Post…reports Asian Lite News

Amid the FTX collapse saga, customers withdrew $1.14 billion in just 12 hours from leading crypto exchange Binance and according to its CEO, the massive withdrawals were “handled with ease” and “things seem to have stabilised” now.

Customers pulled billions of dollars of funds from the exchange, amid fears about the state of the cryptocurrency industry following the collapse of FTX and arrest of its former CEO, Sam Bankman-Fried (SBF), from the Bahamas by the US authorities.

Changpeng Zhao tweeted that this was “not the highest withdrawals we processed, not even top 5”.

The CEO said deposits are returning to Binance.

“Things seem to have stabilized. Yesterday was not the highest withdrawal we processed, not even top 5. We processed more during LUNA or FTX crashes. Now deposits are coming back in,” he tweeted on Wednesday.

“We saw some withdrawals today (net $1.14b ish). We have seen this before. Some days we have net withdrawals; some days we have net deposits. Business as usual for us. I actually think it is a good idea to ‘stress test withdrawals’ on each CEX on a rotating basis,” he posted.

Since the bankruptcy of FTX, Binance has been seeking to prove it has all of its customers’ reserves.

This would differentiate it from FTX, which got into trouble by lending customer funds to its sibling trading firm Alameda Research, reports South China Morning Post.

“In the wake of recent events, it’s imperative we develop new systems that allow users to access continuous on-chain verification of their assets in custody to regain user trust and once again prove that crypto is more secure and transparent than traditional finance,” the company said in a statement.

FTX filed for bankruptcy last month after its possible merger with leading crypto exchange Binance did not materialise.

Following his arrest in the Bahamas, US authorities have officially charged Bankman-Fried with defrauding equity investors and he faces up to 115 years in prison, if convicted.

The SEC report said that Bankman-Fried promoted FTX as a safe, responsible crypto asset trading platform, specifically mentioning the platform’s sophisticated, automated risk measures to the investors.

However, the complaint claims Bankman-Fried allegedly orchestrated a years-long fraud to conceal from FTX’s investors.

“We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” SEC Chair Gary Gensler had said in a statement.

ALSO READ-OYO launches ‘Super OYO’

Previous Story

EU committed to support future implementation of GBF under COP15

Next Story

Croatia clinches third place after win against Morocco

Latest from Business

Microsoft Cuts Deep

The fresh job cuts come less than two months after Microsoft announced it was laying off more than 6,000 employees…reports Asian Lite News Microsoft is set to cut around 9,000 jobs —

Northeast Is Growth Engine

Scindia also provided updates on the government’s efforts to facilitate the entry of SpaceX’s Starlink service into India. “All due diligence from the Ministry’s side is complete Union Minister for Communications and

India to Empower Global South

India is emerging as a pivotal force in the global transition to clean energy, with Union Minister for New and Renewable Energy, Pralhad Joshi, asserting that the country is empowering the Global

Maruti’s Global Push Breaks Record

June shipments hit 37,842 units, signalling robust global demand Maruti Suzuki India recorded its highest-ever monthly exports in June, shipping 37,842 units and marking a new milestone that highlights the company’s expanding

India Bats for Fairer Global Finance: FM Sitharaman

FM Sitharaman stated that we believe that optimal regulation fosters innovation and stability….reports Asian Lite News India supports reforms to the international financial architecture to enhance inclusivity and equity, including Multilateral Development
Go toTop

Don't Miss

Websites of Binance, Kucoin blocked in India

Binance’s Customer Support also confirmed the development on X, saying,