Traders Worry as Binance Halts USDC Withdrawals, Leading to Panic
- Binance has announced a halt in the withdrawal of USDC stablecoins on the platform
- The company stated that the halt was to allow it to conduct a crypto swap, letting users convert to cryptos
- The move comes after investors began panic withdrawals from Binance, the aftermath of Justin Sun CEO of BitTorrent allegedly withdrawing $50 million
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Binance has announced a halt in the withdrawal of stablecoin, USDC, which the company says is to enable it to conduct a token swap.
The announcement comes after Binance, the world’s largest cryptocurrency exchange platform, was hit with mass withdrawals by traders who became jittery following the aftermath of the FTX collapse.
Source: Getty Images
Binance explains reason for the halt
The company explained in a statement posted on Twitter that the token swap will allow customers to exchange cryptocurrencies without using fiat currencies.
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Changpeng Zhao, Binance CEO, said on Twitter that the platform has noticed a rise in withdrawals of USDC, a stablecoin pegged to the one-to-one dollar.
Top trader, Justin Sun CEO of BitTorrent allegedly withdrew $50 million from the platform, contributing to panic withdrawals by investors.
Zhao also tweeted a link to Ether indicating he had redeposited $100 million USDC into Binance in an attempt to allay fears.
$1.8 billion withdrawn in 24 hours
A report emerged that in the last 24 hours, traders had withdrawn $1.8 billion from Binance, information from on-chain data says.
The data states that Paxos and Huobi received a part of the inflow with a net flow of $162 million between the two exchanges.
Binance stated that investors can trade in and out of various cryptos using USDC without converting their funds back into US dollars.
It also added that USDC trading on Binance can be done so investors can transfer into other exchanges.
World's largest cryptocurrency exchange platform, Binance hacked, $100 million worth of coins stolen
Recall that Legit.ng reported that Binance, the world's largest crypto exchange platform, Binance has lost about $100 million worth of coins to a cyber attack.
A tweet from Binance CEO, Changpeng 'CZ' Zhao confirmed the attack on Friday, October 7, 2022. Zhao apologized 'for the inconvenience and promised to provide a further update.
According to Zhao, the current attack is estimated at $100 million in a separate tweet.
Source: Legit.ng
