As Binance rebounds from a media storm and following charges of suspicious conduct, there has been an increase in the number of Bitcoin withdrawals.
In the past twenty-four hours, Bitcoin withdrawals from the largest cryptocurrency exchange, Binance, have surpassed $500 million, while the CEO of Binance shouts out "FUD."
According to information obtained from the on-chain monitoring platform Coinglass (1), Binance's BTC balance experienced a loss of more than 30,000 BTC as of December 13.
According to CZ, FUD is "completely irritating."
Binance, the newest epicenter for the repercussions of the FTX scandal, has joined the ranks of exchanges that are seeing an exodus of customer cash.
Coinglass reports that users withdrew 30,300 BTC, equivalent to $515 million, in the 24 hours following the writing time. This accounts for most of the 40,150 BTC withdrawn during the week.
CZ Responds
Binance is currently fighting what its CEO, Changpeng Zhao, commonly known as CZ, has referred to as "FUD" on social media. The odd conduct comes at the same time.
After a story in Reuters suggested that the exchange may become the target of a money laundering lawsuit in the United States, initial nerves began to fray.
Zhao refuted these charges and provided a statement from Binance that disputed the claims made in the study.
Reuters has it wrong again.
— Binance (@binance) December 12, 2022
Now they're attacking our incredible law enforcement team. A team that we're incredibly proud of - they've made crypto more secure for all of us.
Here’s the full statement we sent the reporter and a blog about our remarkable law enforcement team.
However, after that, allegations of significant token withdrawals by Justin Sun, the CEO and founder of TRON, heightened the tensions already there.
Users were quick to remove their monies from their accounts, although Zhao similarly took detractors to task, and Sun returned a $100 million deposit to Binance. When this article was being written, Binance's stablecoin, BUSD, was experiencing a momentary pause in processing some withdrawal requests.
"FUD helps us evolve, even though they are totally annaoying," Zhao wrote (2) in his most recent Twitter thread on the subject. "FUD" stands for "fear, uncertainty, and doubt."
"You can FUD about someone without explicitly mentioning their name, which spreads awareness. It also helps unite their supporters because it forms a common defense alliance."
The incidents are similar to those that occurred earlier in the FTX fiasco when users of the exchange took ownership of their funds in large numbers. Despite this, Binance's Bitcoin balance actually climbed throughout that time.
Bitcoin Technicals
According to data provided TradingView, the price behavior of Bitcoin (BTC) continued untouched by the panic on Binance. BTC/USD increased throughout the day and closed above $17,500.
The value of Binance's native cryptocurrency, BNB, also rebounded after seeing a brief drop to almost $250, representing its lowest level since November 22.
On social media, old hands seemed to have the same coolness as they did on the show.
A well-known trader by the name of Pentoshi made a lighthearted comment (3) as the FUD caused the BNB/USD exchange rate to decline, saying,
"If you want to minimize the market impact on your BNB sales, I will happily buy one from you at $22!"
