Binance halts USDC withdrawals amid $1.9bn outflow

December 13, 2022 at 6:19 pm

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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.

#Binance is conducting a token swap involving $USDC. As a result, $USDC withdrawals are temporarily paused.$USDT & #BUSD withdrawals are available and unaffected. $USDC withdrawals will reopen once the token swap is completed. https://t.co/CxgCGBUJEA
— Binance (@binance) December 13, 2022

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.

https://twitter.com/cz_binance/status/1602579499903852544

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.