Binance sees surge in withdrawals amid spooked investors
Terrill Dicki Feb 16, 2023 09:10
Investors have pulled billions from Binance in the past day due to US Securities and Exchange Commission and New York Department of Financial Services action against BUSD and Paxos.
As a direct result of the recent announcement that Paxos and its stablecoin Binance USD might be subject to regulatory action, the cryptocurrency exchange Binance has experienced a significant increase in the number of withdrawals that have been made over the course of the last twenty-four hours (BUSD).
Peckshield claims that there was a total of 342 million BUSD worth of tokens that were destroyed over the course of the previous twenty-four hours. These redemptions took occurred close to the same time period when substantial activity was taking place with the BUSD token.
On the 12th of February, it was made public that the statement that the United States Securities and Exchange Commission had given notice of possible enforcement action against Paxos had been made. This statement was made public because it was made by the United States Securities and Exchange Commission. Paxos refutes the corporation's allegation, which was that the stablecoin is an unregistered security. The corporation's claim can be found in the previous sentence. Paxos challenges the validity of this assertion in his response.
Binance had multichain token net outflows of $788.5 million during the course of twenty-four hours, as shown by the numbers that were produced by the blockchain intelligence platform Nansen. During the time period in question, this was a result of withdrawals of $2.7 billion exceeding inflows of around $1.97 billion during that time period.
According to the numbers that were provided by Dune analytics, this is the greatest 24-hour net outflow that has occurred since December 17, when Binance's proof-of-reserve audits were pulled down from the website of auditor Mazars. This happened when Binance's proof-of-reserve audits were pulled down from the website of auditor Mazars.
The market "handled with ease" a recent sell-off that lasted for twelve hours and featured withdrawals worth "more than one billion," according to the spokeswoman for the exchange. According to the information presented in the article, the market was successful in accomplishing this goal in spite of the fact that it encompassed "more than one billion."
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