Binance payouts hit $1 billion in 24 hours and that’s not a good sign

Binance is experiencing an impressive capital flight: Members of the platform have raised the equivalent of $900 million in 24 hours. A few weeks after FTX’s bankruptcy, the market is still feverish.

Update from 13 December at 18:00:Payouts are online again ยป, let it be known Binance at the end of the day. For several hours, it was no longer possible to make payouts in USDC, a stablecoin. Changpeng Zhao, the head of Binance, had indicated that we had to wait for the reopening of the banks for the situation to be restored.

Original post: It is no longer a withdrawal wave, it is almost a tsunami. Within 24 hours, Binance’s net outflow of capital reached nearly $1 billion. A total of $902 million was withdrawn from the platform, reports say CoinDesk. The news outlet reports that the outflows from Binance have exceeded all others in the cryptocurrency industry in the past 24 hours – moreover, the sum is almost 9 times larger than other comparable outflows.

So there is nothing particularly good for Binance. It must be said that the largest crypto-currency exchange platform in the world is having a rough start to the week. Implicated by the US in a money laundering case and accused of not being fully transparent in certain reports, Binance is undergoing major upheaval in a market still reeling from FTX’s bankruptcy.

Suspicion of money laundering in the United States

Withdrawals on Binance surged after reports ” worrying about the company’s financial health, according to CoinDesk. After rival platform FTX went bankrupt, Binance promised to release evidence of its funds, ” over-leveraged according to the company. This term refers to the provision of a guarantee whose value is more than sufficient to cover potential losses in the event of default.

The audit, conducted by Mazars, was published on December 7 and rather proves Binance right – but doubts remain.

Binance in turmoil // Source: Canva

An expertcited by CoinDesk thus criticizes the lack of transparency in the management of funds, the Mazars report only confirms the presence of collateral, and the Wall Street Journal believes that ” his finances remain a mystery “.

To this doubt must be added the publication of an article by Reuters on December 12, in which the agency announced that the US courts would consider taking Binance to court. A money laundering investigation is underway in the US against the platform, and according to Reuters sources, some US prosecutors are ready to press charges against Binance executives, including its founder and chairman Changpeng Zhao.

It was enough for individuals and investors to withdraw and leave with their crypto holdings. It is this leak that was observed by CoinDesk and currently equals almost a billion dollars.

A traumatic year for crypto

2022 will go down as a year marked by a violent “bear market” and the impressive bankruptcies of companies considered very reliable. We especially remember the fall of the Terra / Luna ecosystem, which led to the destruction of more than 50 billion dollars, that of the very famous investment fund 3 Arrows Capital, or the collapse of the platform of Celsius loans, which declared bankruptcy.

To all these events is added the FTX trauma. What was the second largest crypto exchange platform in the world, behind Binance, sank in a matter of days into complete bankruptcy and no money.

After all these episodes, crypto investors and individuals are therefore more than frantic at the thought of another bankruptcy. So far, Binance assures that there are no problems with withdrawals and that there is no liquidity concern. The company reportedly has more than $60 billion in funds. However, as difficulties mount, this capital flight could become a real problem for Binance if withdrawals continue.

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