Since the collapse of FTX, market participants have become more cautious. The slightest FUD generates a wave of panic. Binance, the world’s largest crypto exchange has been experiencing waves of withdrawals since this Monday, December 12. According to data from blockchain intelligence platform Nansen, net outflows have reached $902 million in just 24 hours.
Panic at Binance?
Following a series of publications expressing concerns about the health of Binance, users rushed to withdraw. Indeed, since the fall of FTX, all cameras are focused on Binance and CZ, its CEO.
On the one hand, the Securities and Exchange Commission (SEC) is considering a lawsuit. On the other hand, on the web, Jesse Powell, the CEO of Kraken and John Reed Stark, a former regulator, are animating the web with thunderous criticisms of Binance’s proof of reserve report published on December 7 by the audit firm Mazars.
With the community more alert than ever, these accusations had a quick impact on Binance. BNB’s share price also plummeted.
By the evening of December 12, net outflows from the exchange had reached $902 million in just 24 hours. At least that’s what the data from Nansen, a blockchain intelligence platform, notes.
The outflow far exceeded that of other exchanges. According to the data compiled by Nansen, two major trading companies, Jump Trading and Wintermute, withdrew significant amounts of money during this week.
Jump Trading‘s withdrawals reached $146 million, of which $102 million was in BUSD and $14 million in USDT in the last seven days. Wintermute withdrew $8.5 million in Wrapped Bitcoins (wBTC) and $5.5 million in USDC.
Both companies have so far given no reason for their exit. We know, however, that they are victims of FTX.
U.S. authorities prosecute Binance for money laundering?
This story is not new, the U.S. justice system began investigating Binance in 2018. The purpose of the investigation was to rule on the Exchange’s compliance with US anti-money laundering laws.
The charges against Binance are:
- Transferring money without a license;
- Conspiracy to facilitate money laundering;
- Violations of criminal sanctions.
While the situation still remains tense between regulators and centralized exchanges since the FTX case. New information from the Reuters news agency has added fuel to the fire.
Reuters made an investigation tracing the entire history of Binance since its creation, according to them, there would be enough evidence to sanction CZ and its Exchange.
Reuters confirms that they have collected a dozen interviews with the people involved.
Reuters also claims that the exchange has processed more than $10 billion in payments associated with criminals and is conspiring to evade U.S. regulators.
Binance was quick to respond via a statement on Twitter denying all accusations and expressing support for the compliance department.
The wounds caused by the collapse of FTX have not yet healed. News like this only serves to further undermine user confidence in centralized exchanges. We at Coinpri will be following the case closely and will report back to you on the next events. In the meantime, keep your cryptos in secure wallets that you have full control over.
Coming from a journalism university background, I came across Bitcoin and cryptocurrencies not long ago.
The potential of the Blockchain seduced me and I made it my research topic.