Binance: $2 billion withdrawn – Could another exchange go bankrupt?

The collapse of FTX, which occurred over several days in early November, greatly shocked the cryptocurrency industry, especially shaking investor confidence.

The latter began to withdraw crypto assets from FTX, which could lead to disruptions in other crypto exchanges. The Binance example shows how big the outflow of customer funds really is.
The largest crypto exchange in the world lost two billion dollars of invested assets in 24 hours. By comparison, shortly before the FTX crash, cash outflows peaked at $100 million per hour. Binance’s performance was 18 times higher than the second largest churn crypto exchange (Bitfinex).

According to Bloomberg, citing data from the analytical company Nansen, about $3.7 billion was withdrawn from Binance wallets and accounts in a week.

Binance on the radar of the US judiciary

Since 2018, Binance has been on the radar of the US Department of Justice, which is investigating the crypto exchange for money laundering and potential sanctions violations. According to a Reuters report, some prosecutors believe there is plenty of evidence to indict crypto exchange executives, including Binance CEO Changpeng Zhao.

Some prosecutors are pushing for more evidence before charges can be brought. However, it is reported that possible deals with the investigation have already been discussed with Binance lawyers. It is also said that a formal accusation could further plunge the cryptocurrency market into an abyss.

Meanwhile, the head of Binance is trying to calm the public on Twitter. Nansen CEO Alex Svanevik also sees no reason to panic. The outflow is still relatively small compared to the reserves of the crypto exchange.

Investors want to secure funds

Given the general situation in the crypto market, it is not surprising that investors prefer to keep digital coins with them.
The price of the Binance BNB token rose briefly. The reason for the improvement in sentiment was the data on inflation in the US, which turned out to be less bad than experts feared. As a result, prices in the crypto market and in the stock markets went up.

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