February 6, 2023

Nansen says that Binance withdrawals jumped to $3 billion in 24 hours

Nansen says that Binance withdrawals jumped to $3 billion in 24 hours

Hong Kong

Investors withdrew as much as $3 billion from Binance on Tuesday, according to blockchain analytics firm Nansen, as a deluge of… negative addresses About the cryptocurrency industry, users of the world’s largest exchange have been disturbed.

Andrew Thurman, chief content officer at Nansen, told CNN that at its peak, Binance saw “a spike of up to $3 billion in net outflows” over the course of 24 hours. File report Ongoing investigation By the US Department of Justice, the stock exchange was a factor in investor jitters, he said.

“At the same time, it was discovered that a large market maker, Jump, had withdrawn huge amounts of no-deposit from Binance over the past few weeks — which ultimately appears to be causing tension between retail and institutional users,” said Thurman. “In short, a lot of money has been spent, and this has spooked some people.”

Jump Crypto is part of Jump Trading Groupa quantitative trading company.

Binance CEO Changpeng Zhao said that the exchange At one point it saw “some withdrawals” close to $1.1 billion. He later added that the company had seen worse days before.

“We are already seeing the money coming back,” he said. In a conversation on Twitter Spaces on Wednesday, he described withdrawals as “very normal behavior in the market.”

Zhao, who goes by the nickname “CZ,” said that people have plunged into the cryptocurrency sector after the collapse of FTX in November. One-time rival Binance founder Sam Bankman-Fried was arrested in the Bahamas this week after US prosecutors filed criminal charges against him.

“If you get hurt by one bank, you will think all other banks are bad,” Zhao said. “The truth is, just because one bank is bad doesn’t mean all the others are bad.”

Concerns about the health of the sector have driven down cryptocurrency prices. Bitcoin last traded below $18,000, down over 60% since the start of the year.

But Binance’s business is also under scrutiny after FTX’s stunning implosion. on Monday, Reuters It reported, citing unidentified sources, that US prosecutors were considering ending a money laundering investigation into Binance by “filing criminal charges against individual executives including its founder Changpeng Zhao.”

The US Department of Justice did not immediately respond to a request for comment outside of US business hours.

In a statement to CNN, Binance said: “As widely reported, regulators are conducting thorough reviews of every crypto company. “

“This nascent industry has grown rapidly and Binance has demonstrated its commitment to security and compliance through significant investment in our team as well as the tools and technology we use to detect and deter illicit activity,” the company spokesperson added.

Binance was offered at the beginning To help save its smaller rival FTX, by pulling out from the deal last month.

On Tuesday, Bankman Fried been charged in the United States with eight criminal counts, including fraud and conspiracy. Separately, US market regulators have also accused Bankman Fried of defrauding investors and customers.

Known as “SBF,” Bankman-Fried is a cryptocurrency celebrity who became an overnight pariah as his company suffered a liquidity crisis and filed for bankruptcy last month, leaving at least 1 million depositors unable to access their funds.

— CNN’s Julia Horowitz, Matt Egan, and Allison Morrow contributed to this report.