Crypto Firm Binance Says Deposits Return After Big Withdrawals

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LONDON/SINGAPORE, Dec 14 (Reuters) – The head of major crypto exchange Binance said on Wednesday deposits were returning, a day after seeing strong cryptocurrency outflows and halting some stablecoin withdrawals.

On Tuesday, blockchain data firm Nansen said Binance saw $1.9 billion in withdrawals in 24 hours, the largest such outflow since June. Users had withdrawn $3.7 billion worth of crypto in the seven days to Tuesday, he later added.

Binance also temporarily halted withdrawals from the main stablecoin USDC, citing a so-called “token swap”.

“Things seem to have stabilized,” CEO Changpeng Zhao wrote in a tweet. “Yesterday wasn’t the most withdrawals we’ve dealt with, not even the top 5.”

The way crypto exchanges such as Binance and its now bankrupt former rival FTX handle customer deposits has come under scrutiny from users, regulators and policymakers.

Binance said on Tuesday that it still has “more than enough funds” to meet withdrawal requests. “Binance user assets are all collateralized 1:1 and Binance’s capital structure is debt-free,” a spokesperson said.

The exchange also faces legal pressures. Divisions among U.S. Justice Department prosecutors are delaying the conclusion of a lengthy criminal investigation focused on Binance’s compliance with U.S. anti-money laundering laws and sanctions, Reuters reported on Monday, prompting a 4% drop in the market. Binance’s own BNB token.

Nansen CEO Alex Svanevik told CNBC that the report caused “concerns in the market” as investors remained cautious and pulled the crypto from exchanges.

“FUD has brought a ‘stress test,’ which in turn helps build credibility for exchanges that pass the test,” Zhao tweeted on Wednesday, using an acronym for “fear, uncertainty and doubt” often used in crypto. in relation to the news perceived as negative.

Reporting by Tom Wilson and Rae Wee; edited by Gerry Doyle and Jason Neely

Our standards: The Thomson Reuters Trust Principles.

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