YEREVAN (CoinChapter.com) — The unusual number of large withdrawals could threaten crypto exchange Binance. However, its chief executive Changpeng Zhao, aka CZ, says the FUD is “annoying” and calls the situation “business as usual.”
Binance Allegedly Faces Liquidation Issues
Bitcoin and BUSD stablecoin withdrawals surged on Binance, making the latter a prime candidate for being the latest hotspot after the FTX debacle. Social media exploded with crypto experts and enthusiasts spreading the “FUD” and urging all traders to withdraw their funds immediately.
For example, as noted by a user @Blockanalia, crypto market makers Jump Trading and Wintermute made large withdrawals in the previous 24 hours.
Some pretty eye-popping outflows across different timescales as Binance FUD ramps up. Jump alone withdrew over $135 milly on the week, Wintermute pulled nearly $10 milly in the last hour and net outflows of $300 million in the past day.
tweeted the AI technician.
Also read: CPI report shows 7.1% core inflation – what does it mean for Bitcoin?
Binance withdrawals continue on Dec 13
Additionally, former founding CEO at BrightScope & Digital Assets Data Mike Alfred chimed in and urged everyone to REMOVE FUNDS from Binance.
The Binance FUD spread quickly, as another large address, currently unknown, withdrew nearly $100 million BUSD from the exchange.
CZ commented on the BUSD withdrawals, citing timing issues with New York banks. Thus, he expects the “situation to be restored” once the banks open.
CZ Does Not See the Problem, or Does He?
In detail, the crypto market was shaken hard by the chain of DeFi implosions in the current year.
The Terra debacle started a cycle of lending platform insolvencies in Q2-Q3 2022. However, the FTX fiasco added the cherry on top for many investors, who now refuse to trust centralized crypto exchanges, deeming them too vulnerable.
Meanwhile, CZ does not think the FUD has any solid ground to stand on. Moreover, the CEO tweeted that he found the hype “annoying.”
FUD helps us grow, even though they are thoroughly annoying. You can FUD about someone without explicitly mentioning their name, which spreads awareness. It also helps unite their supporters because it forms a common defense alliance.
commented the CEO.
The Binance chief also added that the withdrawals are manageable and not a threat to the exchange’s liquidity, in other words, “business as usual.”
Several users lost no time finding similar comments by the infamous FTX chief Sam Bankman-Fried right before all hell broke loose on the exchange.
Meanwhile, the reasons behind the Binance FUD on Dec 12 are noteworthy.
Binance lawsuit woes
“Four people familiar with the matter” told Reuters yesterday that U.S. Department of Justice prosecutors are delaying the conclusion of a long-running criminal investigation into Binance due to split opinions.
In detail, the investigation began in 2018 and is focused on Binance’s compliance with U.S. anti-money laundering laws and sanctions.
Several federal prosecutors believe the evidence already gathered justifies moving aggressively against the exchange and filing criminal charges against individual executives including founder Changpeng Zhao, said two of the sources. Others have argued taking time to review more evidence.
says the report.
Furthermore, Reuters claims to have investigated Binance’s “financial crime compliance” throughout 2022.
The results showed that the exchange kept “weak anti-money laundering controls.” Additionally, the platform processed over $10 billion in payments “for criminals and companies seeking to evade U.S. sanctions” and plotted to evade regulators in the United States and elsewhere.
Also read: Goldman Sachs Needs Crypto, And It Is Not The Other Way Around.
The Reuters investigation triggered the FUD among Binance investors, as many ran the bank, taking their assets off the exchange. As mentioned, CZ is not yet worried about the unusual withdrawal wave. The upcoming sessions will show if the FUD had merit after all.
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