Traders withdrew US$6 billion in three days from Binance, according to the world’s largest cryptocurrency exchange, as it assured investors who have been spooked by FTX’s collapse that it has enough capital to sustain its operations.
The mass withdrawals from December 12 to 14 were all honoured, Binance said in a Chinese-language blog post on its website, which maintained that its financial situation is sound and that it is not facing any liquidity crisis, without divulging the amount of capital it has. The statement was the first acknowledgement by Binance in the face of mass withdrawals following the November 11 bankruptcy of its smaller rival FTX. The implosion of FTX, whose founders had been accused of fraud and embezzlement, snared tens of thousands of traders with billions of dollars in funds as they were unable to recover the money they had deposited for transacting cryptocurrencies. “Facts proved that we will win the trust of more users after this storm,” Binance said in its blog. “Binance will not embezzle users’ funds for any transaction or investment. It neither has debts, nor is it on the creditors’ list of any company that has recently gone bankrupt.”
