These mass withdrawals signal concerns about Binance, whose users are looking for reassurance that the company is not engaged in similarly shady practices as their now bankrupt rival FTX. Recent news that the US Department of Justice is considering criminal charges against the company has not helped reassure customers.
Binance withdrawals surge due to concerns over the company's reserves
Binance, the largest cryptocurrency exchange in the world, processed at least $1.9 billion in withdrawals in a 24-hour period—considerably more than it processes in a typical day. In fact, the company briefly had to pause withdrawals of the stablecoin USDC because they needed to swap various stablecoins in order to continue to process withdrawals—something they could not do while the New York-based bank was closed.