One of the world’s largest crypto exchanges, Binance, has recently made headlines as its users withdrew digital assets worth a staggering $1.4 billion in a span of 24 hours. The development has been realized amid setbacks of increasing regulatory scrutiny, among other technical challenges that have brought concerns to the crypto market.
Binance, founded by Changpeng Zhao (CZ) in 2017, has played a huge role in the financial ecosystem, establishing itself as a prominent user-friendly crypto exchange platform. The recent reports on the large withdrawals made in a day have also affected its token price (BNB) and has witnessed growth in the market.
Binance faces a withdrawal crisis to the tune of millions
An estimate of $1.4 billion in withdrawals in digital assets has been made via the Binance crypto exchange platform, putting the entire crypto community in a frenzy. This has raised eyebrows in the digital space as the data is confirmed by DeFillama, noting more than $1 Billion in withdrawals made.
According to the data findings, the primary asset withdrawn was Tether’s USDT. Approximately $878 million worth of the stablecoin was withdrawn. Other cryptocurrencies alongside Bitcoin recorded $167 million worth of token withdrawals. This followed the Forbes report on crypto exchanges made since the FTX collapse, noting over $12 billion worth of digital assets outflows.
This significant total of withdrawals has shocked the entire crypto community amid struggles with regulatory concerns and the departure of executives. Binance has found a tough rally this year as it has been caught up in the web of regulatory enforcement. The exchange platform has witnessed the exodus of its top executives during its transition period.
Among the cryptocurrencies withdrawn include Bitcoin, Tron, XRP, Solana, and Tether’s USDT, which has the largest number of withdrawals. Additionally, the report also displays that crypto wallet holdings in Binance are currently worth $57 billion.
Binance struggles in the crypto world
These current developments have been attributed to Binance’s overall perspective, taking into consideration current events looming over the crypto exchange. Among these events is the turnover in executive roles. This has included the exits of top executives in the platform.
The US Chamber of Digital Commerce crypto group is supporting Binance in the SEC battle. The US Securities and Exchange Commission has charged Binance’s US affiliates with security violations.
An amicus brief filed on Thursday shows that the crypto advocacy group said the SEC is stifling financial innovation by creating hostile regulatory environments in the US. The group commented on the lawsuit filing against Binance:
The SEC is suing the equivalent of a grocery store selling oranges and other fruit or an online e-commerce marketplace, like Amazon. Tokens alone are not securities, and the markets where they are available to buy and sell are not securities exchanges.A Crypto advocacy group
The SEC has shown strictness in crypto regulations over the years, but following Gray Gensler’s assumed chair position, the commission’s actions enforcement has been thorough. The largest crypto names in the world have been implicated in regulatory charges, among them including Binance, Kraken, and Coinbase.
Additional departures from the company have been witnessed this past week. This has included Binance France President David Princay, who confirmed his departure from the company. Stephanie Cabossioras, Binance’s French subsidiary director, has also confirmed her exit from the digital platform.
These recent departures follow a wave of consistent exits in the past months from the crypto exchange. Among these departures included senior vice president for compliance Steve Christie and chief strategy officer Partick Hilman. Over 5 exits of executive officials have been done, and this has raised concerns on the company’s leadership roles.