Binance CEO, CZ, Assures Deposits Are Coming Back, Says Situations Now Stable

Binance CEO, CZ, Assures Deposits Are Coming Back, Says Situations Now Stable

  • The world’s largest crypto exchange company, Binance, has said investors are redepositing funds
  • The Chief Executive Officer of the company, Changpeng Zhao, said that about $1.4 billion in withdrawals happened recently
  • Zhao said the company would surmount its current challenges after it paused withdrawals to enable currency swap

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Changpeng Zhao, commonly known as CZ, said on Wednesday, December 14, 2022, that the situation at Binance is now stable in order to douse investors’ fears after the firm was forced to halt withdrawals.

CZ stated that about $1.4 billion of net withdrawals happened on Tuesday, December 13, 2022. He added that it was not the highest withdrawal the firm has processed, stating that deposits are coming back.

Binance, Crypto, Changpend Zhao
Binance Chief Executive Officer, Changpeng Zhao Credit: NurPhoto
Source: Getty Images

Increase in USDC withdrawals leads to a halt

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Zhao’s comments came after the world’s largest crypto-exchange platform halted withdrawals of USDC stablecoin temporarily on Tuesday and said it was conducting a crypto swap.

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He said Binance had witnessed a spike in USDC pullouts. The halt in withdrawals was a result of some currency swaps which needed rerouting through an unspecified bank in New York that was not open.

The company resumed withdrawals after an eight-hour downtime.

Investors were fidgety over the development, especially after FTX collapse and subsequent arrest of its founder, Sam Bankman-fried, now facing fraud charges in the Bahamas.

$3 billion withdrawals in seven days put investors on edge

Nansen, a blockchain analytics company said Binance witnessed more than $3 billion in withdrawals in the last seven days but stated that the situation is not the same as FTX.

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Traders worry as Binance halts USDC withdrawals, leading to panic

CZ has fronted a sense of strength at Binance internally.

He stated that the months ahead would be a bit bumpy but said that ‘we would get past this challenging period.’

CNBC reported that traders asked the platform to be more transparent with Binance’s business. In November, the company issued a proof of reserve, claiming to have a reserve ratio of 101 per cent which means it has enough assets to cover customer deposits.

Zhao stated on Twitter Space that Binance holds user asset reserves of one-to-one. He also said that firm is going to issue another batch of proof of reserve in the coming weeks.

FTX Crash: Binance publishes proof-of-reserve for Bitcoin holdings, promises additional assets coming soon

Legit.ng reported that the world’s largest crypto exchange platform, Binance published its bitcoin proof-of-reserves (POR) system on Friday, November 25, 2022, using The Merkle approach.

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As of November 25, 2022, Binance showed it has onchain reserves of 582,485 bitcoin, while its customer net balance is about 575,742 bitcoin.

The company’s proof-of-reserve ratio stands at 101%.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng

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