Withdrawals from Binance reached $1.9 billion per day
What is happening with the stock market
Clients started withdrawing funds en masse from the world’s largest electronic currency exchange after the bankruptcy of FTX.
Cryptocurrency exchange Binance lost $1.9 billion in 24 hours. This was reported by the specialists of the Nansen analytical platform. Customers decided to withdraw Ethereum from Binance after a series of high-profile scandals and a lack of confidence in the availability of reserves. This was reported by reuters.com.
We will remind, the owner of the third largest cryptocurrency exchange FTX, Sam Bankman-Fried, was arrested at the request of the American authorities in the Bahamas. He is charged with wire fraud, securities fraud, money laundering and criminal conspiracy.
The exchange itself announced bankruptcy on November 11 of this year. As it turned out during the investigation, about $1 billion disappeared from the company’s accounts. Analysts from Nansen, who discovered a leak of about $662 million in tokens, are also engaged in the investigation.
In the immediate aftermath of the FTX collapse, auditors Mazars published a report in which they assured clients that Binance had sufficient reserves to cover payouts. However, he did not convince users and industry experts. The founder of the platform, Changpeng Zhao, reacted calmly to the largest outflow of funds since June and called it ‘normal’.
‘We’ve seen withdrawals today. We’ve seen it before. Some days we only see withdrawals; some days we only see deposits,’ he wrote.
We previously reported that ‘Diia’ started working with the Binance exchange. The program was integrated into the crypto platform to simplify user verification and provide access to the electronic currency market.
It was also reported that Sam Bankman-Fried owed bankrupt investors $3.1 billion. The ex-head of FTX promised to find funds to repay the debt.
