Binance, USD Coin (USDC) It started processing again after stopping withdrawal requests for its stablecoin for a few hours.
Binance Announces Re-Activation After Stopping USDC Withdrawals from the Exchange
World’s largest by daily volume cryptocurrency Binance, the exchange platform, has temporarily suspended USDC withdrawals due to insufficient USDC reserves on the platform, according to Changpeng Zhao, the CEO of the exchange.
According to Nansen data, Binance owns the vast majority of stablecoin assets issued by Paxos. BUSD amounting to more than $11.5 billion. The cryptocurrency exchange has made several efforts to exchange BUSD holdings for USDC in order to increase its USDC reserves.
$USDC withdrawals are back online. Thank you for your patience.
— Binance (@binance) December 13, 2022
However, Zhao said that all token swaps to USDC require funds to be routed through a New York bank that was not yet open at the time. Since this prevented the exchange from performing these transactions, USDC temporarily stopped withdrawals while the exchange was performing token swaps.
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Users continue to withdraw large amounts from Binance, including USDC and other stablecoins. According to estimates, Binance has seen over $2 billion in net outflows in various crypto assets since yesterday.
Binance claims to hold more than $60 billion in assets in all its wallets. However, the Proof of Reserves audits organized by the cryptocurrency exchange were criticized by the Wall Street Journal and caused a wave of FUD in the market.
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*Not investment advice.