Binance founder Changpeng Zhao (CZ) on staff A difficult month is expected as major cryptocurrency exchanges look at customer withdrawals. The warning comes at a time when the crypto industry is facing challenges with high-profile bankruptcies and increased regulation.
Binance, the world’s largest cryptocurrency exchange by trading volume, withdrawn $3 billion from Binance at its peak, according to Nansen data
The net outflow hit $3 billion on Tuesday, according to blockchain analytics firm Nansen. The news comes as Binance founder and CEO Changpeng Zhao tries to assure the team that the company is financially strong enough to survive the crypto winter. was brought to The
Binance Netflow 7D ($) -3,660,311,347
8,783,380,428 – Outflow
5,123,069,081 – InflowExchange Flows dashboard ⤵️https://t.co/CYrBQLryQ0 pic.twitter.com/vV6vcqoWKK
— Nansen 🧭 (@nansen_ai) December 13, 2022
coin trading platform, a major competitor in the exchange market, filed for bankruptcy protection in November. I have dealt with it. FTX founder Sam Bankman-Fried has been arrested in the Bahamas on charges indicted in the US.
According to his Nansen head of content Andrew Thurman, who commented on the CNN leak, his Reuters report on his investigation into Binance by the US Department of Justice was also a factor in investor tensions. became. Headlines that the prosecutor’s office is considering a money laundering investigation also underlie speculation about Binance’s reserves.
In a tweet posted on Tuesday, Changpeng Zhao acknowledged the outflow of funds and claimed: Binance has been in a similar situation before. “Some days we have net withdrawals. Some days we have net deposits. It’s an idea,’ he suggested.
Meanwhile, cryptocurrency executives tried to allay concerns about the health of the exchange in a memo to staff. According to a Bloomberg report citing the documents, Zhao emphasized that the industry is in a “historic moment” and that Binance is in a strong financial position and “will weather any crypto winter.” emphasized.
“The next few months are expected to be bumpy, but we will get through this difficult time. We will get through it and come out stronger,” he said. told his team at Binance. Referring to the latest developments in the space, he added that the recent collapse of FTX has brought “a lot of extra scrutiny and tough questions” to his exchange.
Image Credits: Shutterstock, Pixabay, Wiki Commons