Concerns over Binance are growing, with social media buzzing with fear, uncertainty, and doubt (FUD) around the cryptocurrency exchange. According to Forbes, 3 billion dollars was withdrawn from the exchange firm in just a 24 hour period as the company announced they had temporarily paused withdrawals of stablecoin USDC - Binance have since tweeted that USDC withdrawals have resumed.
Binance CEO, Changpeng Zhao, claimed that the amount was approximately $1.4 billion and said that this amount of withdrawal flow is "business as usual," and was due to a need to complete a "token swap." A spokesperson told Reuters that the company has always had "more than enough funds" for withdrawal requests and that the capital structure within the firm is debt free.
Cryptocurrency users are quickly losing faith in centralized exchange platforms due to ongoing reports of scams and scandals. Binance is already feeling the pressure from authorities as the United States Justice Department are delaying their verdict over breach of anti-money laundering laws and sanctions. Binance and other cryptocurrency exchanges are currently under close scrutiny from both users and regulators, with FTX founder Sam Bankman-Fried being charged on Tuesday with defrauding investors by the United States Securities and Exchange Commission.
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