DECEMBER 13, 2022 BY HENNESSY AJANG
Binance's latest proof of reserves has investors worried. A report from Nansen has revealed that crypto market maker Jump Trading has become Binance's most significant pullback.
Nansen analyst Andrew noted that Jump's net withdrawals from the exchange amounted to $146 million in digital assets over the past seven days.
These withdrawals include $102 million in Binance USD [BUSD], the exchange's stablecoin issued by Paxos; 14 million USDT from Tether; and $10 million worth of ether [ETH]. The tweet read more,
Usually, Jump has large inflows/outflows on exchanges This time it's different - Jump repurchased $245 million BUSD for the month, $106 million last week, and $30 million in the last 24 hours Working very hard to earn money and not burn back. Investors began rushing to withdraw after a Reuters report that the US Attorney's Office was considering charging Binance and its executives with money laundering and sanctions violations.
CEO Changpeng Zhao or CZ called the news FUD [fear, uncertainty, and doubt] and urged people not to worry.
That said, there has been general anxiety about Binance's financial health.
Tron's Justin Sun recently withdrew $50 million from the exchange, which could exacerbate the panic. Sun then tried to ease the tension by tweeting a link to Etherscan, where he deposited 100 million USDC back into the exchange. Withdrawals from Binance Reach Nearly $2 Billion in 24 Hours
Nansen's on-chain data also shows withdrawals across all chains approaching $2 billion in 24 hours. Among the recipients of this inflow are Paxos and Huobi.
Following the reports, Binance tweeted that it is suspending USDC withdrawals while participating in a token swap between USDC and BUSD [run by Paxos].
CZ clarified that until the bank begins operations in the United States, it will not be possible to update the account records required for this swap at a New York-based bank. He added that Sun's Binance repository is a step towards implementing BUSD on TRON. "This is 1 conversion, no margin or leverage. We will also try to establish smoother trading channels in the future. In the meantime, feel free to withdraw any other stablecoins, BUSD, USDT, etc. ", he added.