The world’s largest cryptocurrency exchange, Binance, recorded a withdrawal of $1.9 billion in the last 24 hours.
Binance announced that it has “temporarily suspended” withdrawals of USDC stablecoins, a cryptocurrency whose value is stable and pegged 1:1 to the US dollar.
The $1.9 billion was the biggest daily outflow since June this year, Nansen data showed, and accounted for the bulk of the $2.2 billion in Ethereum-based withdrawals over the past seven days.
“Withdrawals from Binance are increasing due to growing uncertainty about its reserves ratio.”
On the other hand, a Binance PR representative says that people deposit and withdraw funds every day for a variety of reasons.
“User funds on Binance are backed 1:1 and Binance’s capital structure is debt-free. We always have more than enough funds to meet withdrawal requests,” he added.
Binance, whose dominance in the cryptocurrency world was cemented by the bankruptcy of rival exchange FTX, tweeted last week a report from auditing firm Mazars as proof of the company’s reserves.
The report showed that Bitcoin stock exceeded customer deposits on one day in November.
Binance recorded an outflow of $902 million on Monday. This exchange is already under pressure from the authorities.
A split among prosecutors at the US Department of Justice is delaying the conclusion of a long-running criminal investigation focused on Binance’s compliance with US anti-money laundering laws and sanctions.