Binance daily withdrawals double as users report problems off-ramping


CoinDesk Consensus

Binance has experienced $1.6 billion in withdrawals since Monday, according to Nansen data shared by Reuters.

Binance users have reported difficulties off-ramping during this period via social media.

Nonetheless, others view the mass withdrawal reasoning as FUD.

CFTC sues Binance

The Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance on March 27, accusing the exchange of multiple regulatory violations related to its non-compliant cryptocurrency exchange operations.

CFTC Chairman Rostin Behnam told CNBC that Binance deliberately deviated from U.S. law while operating a “direct and clear way” to access U.S. markets.

according to Reuters, Binance users withdrew $1.6 billion after filing with the CFTC court earlier this week. More than half of that, or $852 million, has left the exchange in the last 24 hours. This figure is more than double his average daily withdrawal rate of $385 million over the past two weeks.

Research analysts at Nansen Martin Lee said that while regulatory action has seen higher-than-expected withdrawal rates in the past 24 hours, they are still lower than those seen in December 2022, when concerns about exchange solvency peaked. I said less.

CryptoQuantCEO Ki Young Ji Binance said it processes billions of deposits and withdrawals every day. His tweet included forward exchange charts for Bitcoin and Ethereum. While the latter showed a declining trend in reserves, Bitcoin balances on Binance have been on an upward trend, reaching a sharp rise this week.

Youngji continued by criticizing the article by wall street journal, Which report Binance has experienced a $2 billion Ethereum outflow in the past 7 days, calling it “silly FUD.”

Binance Bitcoin and Ethereum Reservation Balance

Users report off-ramp issues

Meanwhile, in a post r/Binance US We described cash withdrawals initiated over a week ago through the Automated Clearing House (ACH) network that have yet to arrive.

According to the poster, Binance customer service was unable to provide definitive information regarding the holdup and is calling on others to share their off-ramp experiences at this time.

Several Redditors have pointed out similar issues, one of which said the explanation was that the funds were “stuck” with the payment processor. Another respondent agreed with this answer, stating that they were told that customer service was “working diligently with their payment processor” to correct the delay.

@ Parrot Capital He warned his followers to transfer funds in cryptocurrencies and move them elsewhere.

Posted In: Exchanges, Regulation

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