Binance Net Outlfows Surge $902-M In A Day As Exchange Faces Quiz

Binance, the world’s largest crypto exchange by trading volume, endured a wave of withdrawals on Monday (Tuesday, Dec. 13, 2022, in Manila) amid concerns about its proof of reserve report, Krisztian Sandor reported for CoinDesk.

Photo Insert: It has also been recently reported that US prosecutors are mulling criminal charges for money laundering to the tune of $10 billion against Binance and its chairman, Changpeng Zhao.

Net outflows, the difference between the value of assets arriving and leaving the exchange, hit $902 million in the past 24 hours, according to data by blockchain intelligence platform Nansen.

Binance’s net outflow has surpassed those of all other centralized exchanges in the last 24 hours, and is almost 900% larger than the second largest outflow.

The outflow was the highest for Binance since Nov. 13, two days after FTX filed for bankruptcy protection, according to data provided by blockchain data platform Arkham Intelligence.

However, the outflow “doesn’t seem notably anomalous,” Henry Fisher, an Arkham analyst, wrote in a Telegram chat, given that there are ostensibly $64 billion of assets on Binance.

Withdrawals rose following a string of concerning news reports about Binance, and as investors have become increasingly cautious about their funds on centralized exchange.

The collapse of rival exchange FTX, along with other debacles, prompted other exchanges to prove they are protecting customers’ assets.

Binance released a report last week by auditing firm Mazars, which audited defeated US president Donald Trump’s businesses, that claimed its bitcoin (BTC) reserves are overcollateralized. Experts ridiculed the document for its narrow scope.

Reuters also recently reported that US prosecutors are mulling criminal charges for money laundering to the tune of $10 billion against Binance and its chairman, Changpeng Zhao.

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