{"id":474225,"date":"2022-12-14T13:57:34","date_gmt":"2022-12-14T11:57:34","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=474225"},"modified":"2022-12-14T14:31:55","modified_gmt":"2022-12-14T12:31:55","slug":"binance-bank-run","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/cryptocurrency\/474225-binance-bank-run.html","title":{"rendered":"Binance bank run"},"content":{"rendered":"

Binance Holdings Ltd. founder Changpeng \u201cCZ\u201d Zhao said outflows from the largest cryptocurrency exchange have \u201cstabilized\u201d while warning employees that the industry\u2019s recovery from rival FTX\u2019s collapse will be \u201cbumpy.\u201d<\/p>\n

In a tweet on Wednesday, Zhao said \u201cthings seem to have stabilized\u201d and that \u201cdeposits are coming back in.\u201d He\u2019d earlier said Binance saw about $1.14 billion of net withdrawals on Tuesday.<\/p>\n

Customers pulled funds from Binance\u2019s platform this week amid a lack of confidence in the crypto sector following the implosion of FTX.<\/p>\n

Sam Bankman-Fried, FTX\u2019s co-founder, has been charged with fraud for allegedly misappropriating billions of dollars of customer money.<\/p>\n

Binance saw a record daily net outflow of Bitcoin and Ether in terms of numbers of tokens on Tuesday, according to research firm CryptoQuant. A net 40,353 Bitcoins and 278,017 Ether tokens were withdrawn, the figures indicate.<\/p>\n

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The crypto billionaire also sought to reassure his employees, saying in a\u00a0memo to staff\u00a0that Binance is in a strong financial position and \u201cwill survive any crypto winter.\u201d<\/p>\n

\u201cWhile we expect the next several months to be bumpy, we will get past this challenging period \u2013 and we\u2019ll be stronger for having been through it,\u201d he wrote in the memo, which was seen by Bloomberg News.<\/p>\n

A net $256 million flowed into Binance in the past 24 hours as of 12:25 p.m. in Singapore on Wednesday, according to data from blockchain analytics firm Nansen. Over the past seven days, there was a net outflow of $1.2 billion. Nansen\u2019s snapshot doesn\u2019t take into account Bitcoin movements.<\/p>\n

Responding to questions about the recent outflows and concerns about transparency, a spokesperson said by email: \u201cPeople deposit and withdraw assets everyday for a variety of different reasons. User assets at Binance are all backed 1:1 and Binance\u2019s capital structure is debt free.\u201d<\/p>\n

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Things seem to have stabilized. Yesterday was not the highest withdrawals we processed, not even top 5. We processed more during LUNA or FTX crashes. Now deposits are coming back in. 🤷‍♂️💪 https:\/\/t.co\/WLK2KyCym0<\/a><\/p>\n

\u2014 CZ 🔶 Binance (@cz_binance) December 14, 2022<\/a><\/p><\/blockquote>\n