Binance Records Withdrawals Of Over $900 million Following Suspicion In Its Proof Of Reserve Report
Withdrawals on the Binance exchange have reached an all-time high, with a net outflow of over $900 million in 24 hours. This outflow was triggered by a suspicious observation in its proof of reserve report.
FUD In Binance Exchange
Binance, the top crypto exchange in the last 24 hours has seen a massive outflow of withdrawals from its exchange.
Following the FTX drama, which was partly blamed on transparency, exchanges began releasing a snapshot of their proof of reserves to investors and the general public in order to promote transparency and reassure investors that their funds are safe and there is no sign of bankruptcy or liquidation.
However, following the release of Binance’s proof of reserve report, there appeared to be suspicious observations on the report, which was followed by massive withdrawals of funds from the exchange.
According to data from a blockchain intelligence platform, the difference between the net flow out and into the exchange totalled more than $900 million, indicating that investors were withdrawing for safety reasons.
This net outflow has peaked as one of the highest outflows recorded on Binance, even surpassing the FTX withdrawals seen on November 13th, 2022, after it was discovered that FTX was being liquidated.
However, an Arkham Analyst, Henry Fisher, noted that this withdrawal rate does not appear to be too unusual given Binance’s massive asset base.
These withdrawals were prompted by a recent proof of reserve report issued by Binance, and in a time when investors have become wary of any centralized exchange, it is not surprising that they followed their instincts and rushed to exit the platform.
The demise of FTX sparked an awakening in the crypto space, causing investors to be more cautious with their funds and exchanges to be more transparent in their dealings.
Alleged Fraud Charges Against Binance
Binance issued a report that included an audited Mazar firm report in which he claimed that the BTC in the finance reserve were overcollateralized.
With this situation, law enforcement agencies and news outlets were quick to investigate, labelling it as a case of embezzlement and fraud.
Binance CEO Changpeng Zhao, on the other hand, has not commented on any of this and has urged his followers to ignore it and the misinformation being spread about the firm.
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