Binance CEO Changpeng Zhao fights crypto jitters, exchange processes $1.4 billion in withdrawals in 24 hours

Binance CEO Changpeng Zhao aka CZ, addressed the rumors of the exchange’s insolvency amidst rising withdrawals on the platform. CZ informed his 7.9 million followers on Twitter that despite processing nearly $1.4 billion in crypto withdrawals, the outflow is not even close to the top five withdrawal days on Binance’s exchange. 

Following the Terra LUNA implosion and the FTX exchange crash, Binance processed withdrawals for users without interruptions, the exchange holds customer funds as is and remains solvent till date. 

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Binance processes massive withdrawals, Changpeng Zhao alleviates user concerns

Binance, the largest exchange by trade volume, has been smoothly processing withdrawals for users despite a massive spike in the outflow in the last 24-48 hours. FTX exchange collapse fueled crypto jitters among users and crypto Twitter is rife with speculation of Binance’s insolvency. 

Changpeng Zhao, the CEO and majority stakeholder in Binance International and Binance US assured traders that the exchange remains solvent despite $1.4 billion in withdrawals in a 24-hour period.

The current withdrawals do not rank in the top five withdrawal days for the exchange, the days following the $41 billion implosion of Terra’s sister tokens LUNA and UST and FTX exchange’s collapse. 

DU09BTC, a crypto analyst, addressed the fear, uncertainty and doubt (FUD) surrounding Binance. The technical analyst argues that Binance has processed $6 billion in cryptocurrency withdrawals using deposits from their wallets. In comparison, FTX exchange went insolvent after the first few billion and the current withdrawal spree is a good stress test where only the best survive the bear market. 

Binance assures traders of crypto reserves

A Binance spokesperson told Bloomberg that the exchange is debt free. The statement reads as follows:

People deposit and withdraw assets everyday for a variety of different reasons. User assets at Binance are all backed 1:1 and Binance’s capital structure is debt free. We maintain hot wallet balances to ensure that we always have more than enough funds to fulfill withdrawal requests and we top up hot wallet balances accordingly.

Commenting on the Binance proof-of-reserves report from the accounting firm Mazars, the exchange commented:

We are working collaboratively with Mazars to share all relevant financial information with them so that they can verify the accuracy of all the data we have shared as well as our process for extracting the data.

BNB price remains steady despite crypto jitters

Binance’s native token Binance Coin (BNB) price remained largely unchanged despite mass withdrawals on the exchange platform. BNB is exchanging hands at $274.58 and the price is up 2.2% in the past 24 hours. 

BNB/USD price chart 

BNB yielded nearly 6% gains for holders overnight despite the spree of withdrawals that Binance is tackling for the last 48 hours.