Binance customers pulled more than $1 billion the day US authorities slammed the crypto giant with a lawsuit
Binance alleged that the crypto giant, its CEO Changpeng"CZ" Zhao, and former chief compliance officer Samuel Lim solicited US customers, violating a law that says crypto exchanges have to be registered as US companies to serve Americans.– including that Binance encouraged customers to use VPNs to hide their IP addresses and that Lim and other compliance staff knew it was processing funds for the Palestinian militant group Hamas and laundering money for Russian criminals.
This isn't the first time that customers have pulled billions of dollars from Binance on news of US regulator probes or other troubles at the exchange. Binance suffered net outflows as high as $3 billion over a 24-hour period the day US authorities charged FTX CEO Sam Bankman-Fried with fraud, according to"The withdrawals we have seen in the past few days have been significantly lower than in other periods of negative news. Outflows and inflows have now stabilized," a Binance spokesperson told Insider.
"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. User assets at Binance are all backed 1:1 and Binance's capital structure is debt free," the spokesperson added. US regulators have stepped up their crackdown on crypto exchanges since FTX's collapse wiped out billions of customers' fund and led to a string of high-profile bankruptcies in the industry.
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