London/Singapore: (Web Desk) The head of major crypto exchange Binance said deposits were returning, a day after it saw heavy outflows of crypto currencies and halted some stable coin withdrawals. On Tuesday, block chain data firm Nansen said Binance saw withdrawals of $1.9 billion in 24 hours, the largest such outflow since June. Users had pulled out $3.7 billion in crypto over the seven days to Tuesday, it later added.
According to the sources, Binance the world’s largest crypto exchange, also temporarily halted withdrawals of the major USDC stable coin, citing a so-called “token swap”. “Things seem to have stabilized,” CEO Changpeng Zhao tweeted. “Yesterday was not the highest withdrawals we processed, not even top 5.”
Furthermore Nansen said Binance has seen net inflows in the last 24 hours of tokens on the ethereum block chain totaling around $718 million. Binance did not immediately respond to a request for comment. How crypto exchanges such as Binance and its now-bankrupt former rival FTX handle customer deposits has come under close scrutiny from users, regulators and policymakers. Binance said on Tuesday it always had “more than enough funds” to meet withdrawal requests. “User assets at Binance are all backed 1:1 and Binance’s capital structure is debt free,” a spokesperson said.
As per details the exchange is also facing legal pressures. Splits between U.S. Department of Justice prosecutors are delaying the conclusion of a long-running criminal investigation focused on Binance’s compliance with U.S. anti-money laundering laws and sanctions, sparking a 4% drop in Binance’s own BNB token.
Meanwhile Nansen CEO Alex Svanevik said that the reporting had led to “concern in the market” with investors staying cautious and withdrawing crypto from exchanges. “FUD brought “stress test”, which in turn helps to build the credibility for exchanges that passes the test,” Zhao tweeted on Wednesday, using an acronym for “fear, uncertainty and doubt” often used in crypto in relation to news perceived as negative.
