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Rumors of massive cash outflows, the anger of a US supervisor, and now the temporary suspension of payments for the digital currency Bitcoin: Binance is not sitting still. The world’s largest crypto exchange, like the entire industry, has been struggling with a loss of confidence since the FTX scandal.
The latest episode: Investors could no longer pay bitcoins early Monday morning. And this is the second time in 24 hours. “Our team is currently working on a solution and will reopen Bitcoin withdrawals as soon as possible,” the company said on Twitter. Payables were temporarily settled “due to the large volume of pending transactions”. Binance assured: “The coins are safe.”
Then the good news on Monday morning: After a good two hours, Binance has reopened bitcoin payments. Meanwhile, more than 500,000 transactions were blocked.
44 billion francs wasted overnight?
Rumors about Binance are circulating on social media these days. Twitter users posted data claiming that it showed Binance pulled more than 175,000 bitcoins from the platform overnight. That would be more than 44 billion francs!
But even then, the largest crypto exchange reassured its investors via Twitter. “We are aware that some data shows large volume exits from Binance.” These exits are movements between “hot” and “cold” Binance wallets that have been completed due to Bitcoin address adjustments.
What does Binance do?
We’re talking about the Lightning Network, a second layer running on the Bitcoin blockchain. It enables faster Bitcoin payments by processing transactions on the main blockchain while maintaining the same decentralization and security.
In addition to the address change on the Lightning Network, Binance has also adjusted the fees so that payments are not stopped in the future.
Terrorist financing and money laundering?
Since the FTX scandal, Binance has repeatedly made negative headlines. Shortly after the collapse of the third largest cryptocurrency exchange in the US, several billion dollars were withdrawn from the platform. In March this year, it was also announced that the US supervisory agency CFTC is investigating Binance for terrorist financing and money laundering.
According to the latest developments on Binance, bitcoin price continues to drop to its two-week low of CHF 25,100. According to data from the benchmarking platform “Coingecko”, Binance has significantly lost its position in terms of Bitcoin trading volume and is no longer even among the top 10 exchanges for Bitcoin transactions.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
