Binance halts USDC withdrawals amid $1.9bn outflow

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Stablecoins
Binance halts USDC withdrawals amid $1.9bn outflow

UPD: Binance resumed withdrawals of the USDC on Dec. 13, according to the company’s Twitter.

On Dec. 13, Binance announced that it had temporarily paused withdrawals of USDC, a dollar-pegged stablecoin, due to a token swap. The company stressed that USDT and BUSD withdrawals remained intact.

Changpeng Zhao, Binance’s CEO, stated on Twitter that there were massive withdrawals on the stablecoin from the exchange. However, he claimed that the stablecoin would be available again after the banks in New York opened.

According to a recent report by data firm Nansen, the number of withdrawals from Binance in the past 24h comprised $1.9 billion. The turmoil came after the news of the proof-of-reserves (PoR) spread panic among investors.

The crypto community is on edge due to concerns about further industry contagion following the collapse of FTX and the arrest of its former CEO, Sam Bankman-Fried.

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Julius Mutunkei

Julius is a blockchain reporter skilled at synthesizing all crypto-related information to make articulate texts easy for anyone to grasp. With a beginner's level certificate in Financial Analysis, Julius can read, interpret and report crypto findings to help investors exercise the best judgment in their decision-making process. When he is not caught up in the crypto frenzy, Julius likes playing a game of FIFA with his online buddies.