Investors pulled $3 billion from Binance on Tuesday, according to blockchain analytics firm Nansen. negative headlines has confused users of the world’s largest exchange about the cryptocurrency industry.
Andrew Thurman, content lead for Nansen, told CNN that Binance saw “up to $3 billion in net outflows” in the 24 hours at its peak. report on ongoing investigation According to the US Department of Justice, there is a factor of nervousness of investors entering the stock market.
“At the same time, Jump, a major market maker, was found to be withdrawing large sums of money from Binance without any deposits over the past few weeks – resulting in confusion among both retail and institutional users,” Thurman said. “In short, a lot of money went and it scared some people.”
It is part of Jump Crypto Get Trading Groupquantity trading company.
Binance CEO Changpeng Zhao said on the exchange saw “some withdrawals” of about $1.1 billion at one point. The company had seen worse days, he added.
“We’re already seeing money flowing back in,” he said In a chat on Twitter Spaces on Wednesday, he called the fund withdrawal “very normal market behavior.”
Zhao, known as “CZ”, said that people have been weak in the crypto sector since the collapse of FTX in November. The founder of one-time rival Binance, Sam Bankman-Fried, was arrested in the Bahamas this week after US prosecutors opened a criminal case against him.
“If you’re hurt by one bank, you’re going to think all the other banks are bad,” Zhao said. “The fact is, just because one bank is bad doesn’t mean all other banks are bad.”
Concerns about the health of the sector are driving down the price of digital coins. Bitcoin last traded below $18,000, down more than 60% on the year.
But Binance’s performance is also under scrutiny after FTX’s spectacular explosion. Monday, Reuters citing unidentified sources, US prosecutors are considering wrapping up the money laundering investigation into Binance by “filing criminal charges against individual executives, including founder Changpeng Zhao.”
The US Department of Justice refused Comment.
In a statement to CNN, Binance said, “As has been widely reported, regulators are reviewing every cryptocurrency company extensively.🇧🇷
“This emerging industry has grown rapidly, and Binance has demonstrated its commitment to security and compliance through significant investments in our team, as well as the tools and technology we use to detect and prevent illegal activity,” the spokesperson said.
there was binance is offered first helping save smaller rival FTX pull contract last month.
Tuesday, Bankman-Fried was accused in the United States on eight felony charges, including wire fraud and conspiracy. Separately, US market regulators accused Bankman-Fried of defrauding investors and customers.
Bankman-Fried, known as “SBF,” is a cryptocurrency celebrity that became an overnight pariah after its company suffered a liquidity crisis and filed for bankruptcy last month, leaving at least one million depositors unable to access their funds.
— CNN’s Julia Horowitz, Matt Egan and Allison Morrow contributed to this report.
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