The crypto exchange processed net outflows of almost $3.66 billion on December 12, the biggest since June, according to Nansen data, as the company suffered a very high amount of withdrawals this week.
Authorities with the U.S. Department of Justice are considering bringing legal action against Binance and some of its individual executives, including CZ, according to four sources cited by Reuters.
In the latest rounds of news ongoing, Binance CEO Chengpeng "CZ" Zhao has informed his staff in an internal memorandum that he anticipates a tougher ride for cryptocurrency in the next few months. Amidst the uncontrollable feast of heart-wrenching and discouraging news, this serves as further amplification.
According to Bloomberg, the CEO mentioned that, though eccentric and firm restrictions and regulations have emerged after FTX's sudden bankruptcy, he projects that his company will survive this debacle and will emerge even stronger than it previously was.
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Zhao highlighted the latest fierce evaluation that a good number of cryptocurrency exchanges are facing, citing this as "a historic and significant period in the market," but said that Binance is sturdy and established to wade through any storm and still remain unscathed and functional. After FTX's meltdown, crypto users and influencers have grabbed the scruff of other cryptocurrency exchanges, acting with suspicion and second-guessing whatever move they make.
Recently, Binance revealed that its USDC withdrawals spiked after it announced that it was going to suspend withdrawals for a while. After Sam Bankman-Fried got arrested on Monday, the attention of the market has tilted towards Binance and its CEO. This week saw a record-breaking number of withdrawals for the company; on December 12, the crypto exchange processed net outflows of almost $3.66 billion, the highest level since June, according to Nansen data.
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Furthermore, a number of prominent members of the cryptocurrency community have criticized Binance, arguing that its most recent attestation, which demonstrated that it had more than enough bitcoin to cover all customer deposits, was insufficient.
All of this has spurred Zhao to opine that the next few months could be extremely turbulent for cryptocurrency at large. What do you think about his opinion? Let us know what you think in the comment section below.
