$3.6 billion withdrawn from Binance – Is the platform in danger?

Leaking users? The Binance exchange was hacked in one week and the total amount exceeded 3.6 billion dollars. But Changpeng Zhao (CZ) is reassuring, saying it’s just a “stress test” for the exchange. Should we believe it?


$3.6 billion was withdrawn from Binance during the week

Analyst firm Nansen reported that Binance withdrawals were particularly high this week. In general, the platform More than 3.6 billion dollars left its treasury :

In comparison, Coinbase has “only” lived During the same period, 574 million dollars were withdrawn. The difference is, of course, explained by the difference in size of the two institutions, but not only.

Significant market makers According to another Nansen analyst, it actually ran off the platform:

Wintermute and Jump Finance actually contributed $300 million in transit over the course of December 12. There’s a reason for that: Binance really came into the spotlight earlier this week, and not in a good way.

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Users are panicking on Binance

A few events really panicked investors. On the one hand, we learned on December 12 Binance will be targeted by American justice, he said, as part of a money laundering investigation. A Reuters investigation claimed that the platform would have handled more than $10 billion in transactions on behalf of criminal or illegal individuals had the controls not been taken.

Binance, of course, denied the facts and praised the monitoring team. But this was enough to panic users who started transferring money. So much so that the platform was rocked on December 12: USDC withdrawals were temporarily suspended. A case that Changpeng Zhao justified by the closure of banks on weekends, but which failed to convince especially cautious investors since the fall of the FTX.

Changpeng Zhao spoke again in recent days to calm concerns. So he claimed said it was a “stress test” for the platform, which proves its strength. It should be noted that Binance has significant reserves, which increased it after the fall of FTX. CZ also mentioned that all Binance funds are counted and listed and user funds are not used:

If the exchange keeps its users’ assets intact, it’s not the tweets that will cause the problem. It’s simple.»

That obviously wasn’t enough to convince the community. This is the problem of the hegemony of an institution: if it is threatened, the consequences of a possible decline are particularly strong, and this is felt in the fear of users.

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Source: Binance, press release

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