Binance suffered a record withdrawal in just 24 hours

Binance suffered a record withdrawal in just 24 hours

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2023-02-16 04:00:42

Data from blockchain data firm Nansen shows that users have withdrawn about $2.8 billion in digital assets from crypto exchange Binance in the past 24 hours alone. Meanwhile, the amount of money poured in at the same time was nearly 2 billion USD. Thus, Binance had a net withdrawal of about 830 million USD in 24 hours. This is also the largest net withdrawal since November 2022 when FTX went bankrupt.

The highest amount of net withdrawals from Binance since November 2022. Photo: Nansen

However, currently, Binance is still holding more than 70 billion USD in user assets, of which the majority are BNB (25.05%), USDT (21.28%), BUSD (18.96) %), BTC (15.06%), ETH (9.64%) and the rest are other altcoins.

According to CoinDesk, investors were stunned by the news that the New York Financial Services Authority (NYDFS) asked Paxos, the company behind the BUSD, to stop issuing this stablecoin from 21. /2.

In a warning to users on February 13, NYDFS forced Paxos to stop minting BUSD “due to a number of unresolved issues regarding Paxos oversight of their relationship with Binance.”

A representative of the NYDFS said that Paxos violated its obligations to periodically conduct risk assessments and due diligence on Binance customers to prevent bad actors from using the platform.

The move from NYDFS will hurt Binance severely, as according to Nansen data, BUSD is currently the second largest asset in Binance’s reserves after Tether’s USDT, with around $13.4 billion in BUSD on the platform. Binance platform.

BUSD is currently the third largest stablecoin in the world, accounting for about 35% of Binance’s trading volume. Although named after Binance, BUSD was not created by this cryptocurrency exchange, but has a close relationship. Binance CEO Changpeng Zhao also confirmed the stablecoin is “fully owned and managed” by Paxos.

In the February 13 announcement, Paxos said that its reserve instruments still fully support BUSD at 1:1 conversion, and confirmed that it will buy back these coins at least until February 2024. .

Previously, the Wall Street Journal reported that the US Securities and Exchange Commission (SEC) was also planning to sue Paxos, accusing BUSD of being an unregistered security. The SEC has not yet confirmed this information.

Since the bankruptcy of crypto exchange FTX in November 2022, Binance founder, Changpeng Zhao, has promised that his company will “set an example” in transparency.

In an announcement on Twitter, CEO Changpeng Zhao claims to always ensure the safety of more than $70 billion in customer assets. In response to a question about the debt audit report, the CEO of Binance also stated that the exchange “does not owe anyone”.

Reference: Coindesk

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