The largest cryptocurrency exchange in the world, Binance, reported on Tuesday that it had “temporarily suspended” withdrawals of the USDC stablecoin but those withdrawals totalled roughly $2 billion over the previous 24 hours.
The failure of competitor exchange FTX solidified Binance’s supremacy in the cryptocurrency market, and last week it tweeted a purported proof-of-reserves report from audit company Mazars. The study revealed that on one day in November, its bitcoin holdings were more than what customers had deposited.
According to the Nansen statistics, the $1.9 billion amount represents the greatest daily outflow since at least June and made up the majority of the $2.2 billion in ether-based withdrawals over the previous seven days. Binances withdrawals are increasing due to the growing uncertainty about its reserves report,
People deposit and withdraw assets daily for various reasons, according to a representative for Binance. All user assets on Binance are 1:1 backed, and the company has a debt-free capital structure.
The representative said, “We always have more than enough money to satisfy withdrawal requests.
According to a previous report from the cryptocurrency news site CoinDesk, Binance lost $902 million on Monday. Authorities are already exerting pressure on the exchange. A lengthy criminal investigation into Binance’s compliance with US anti-money laundering rules and penalties is being delayed because to disagreements among US Department of Justice prosecutors.
The BNB coin on Binance fell by approximately 4% due to the news.
The release of the Nansen data coincided with Binance stopping USDC withdrawals due to a “token swap,” in which holders of digital tokens trade their cryptocurrency for one another, generally across multiple blockchains.