Binance has registered $1.9bn of withdrawals in the past 24 hours, blockchain data firm Nansen said on Tuesday, as the world’s biggest cryptocurrency exchange said it had “temporarily paused” withdrawals of the USDC stablecoin.
How cryptocurrency exchanges, such as Binance and its now-bankrupt former rival FTX, handle customer deposits is under close scrutiny from users and regulators. FTX founder Sam Bankman-Fried was charged by the US Securities and Exchange Commission on Tuesday with defrauding investors.
Binance, whose dominance of the cryptocurrency market was cemented by the fall of FTX, last week tweeted a so-called “proof-of-reserves report” by audit firm Mazars. The report showed its holdings of Bitcoin exceeded customer deposits on a single day in November.
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