Binance Withdrawals Double As Users Face Off-Ramping Problems
Binance Withdrawals Surge Amid Regulatory Woes
• Binance withdrawals surged to $852 million in 24 hours, with more than double the average daily withdrawal rate over the last two weeks.
• The CFTC recently filed a lawsuit against Binance accusing the exchange of multiple regulatory violations related to operating a non-compliant cryptocurrency exchange.
• Users have reported difficulty off-ramping amid the surge in withdrawals.
Record High Withdrawals
Data from Nansen showed that Binance experienced a total of $1.6 billion in withdrawals since Monday due to regulatory issues. Of this amount, $852 million was withdrawn within 24 hours – more than double the average daily withdrawal rate over the last two weeks, which was calculated at $385 million. Ki Young Ji, CEO of CryptoQuant remarked that Binance processes billions in deposits and withdrawals daily and criticized an article by The Wall Street Journal for reporting “ridiculous FUD” about Ethereum outflows.
CFTC Lawsuit Against Binance
The Commodities Futures Trading Commission (CFTC) filed a lawsuit against Binance on March 27 for allegedly violating U.S regulations while operating “a direct, clear method” to access the American market. CFTC Chair Rostin Behnam told CNBC that Binance had intentionally swerved U.S laws while doing so. Martin Lee, Research Analyst at Nansen noted that although withdrawals were higher than usual due to regulatory actions, it was still less than those seen in December 2022 when fears over solvency were at their peak.
Users Report Problems Off-Ramping
A post on r/BinanceUS described a cash withdrawal initiated over a week ago via Automated Clearing House (ACH) network that has yet to arrive despite customer service being unable to help with it or provide any explanations as to why it is taking such long time for it process this transaction . This indicates potential problems faced by users attempting off-ramp during this period amidst mass withdrawals from the exchange .
In conclusion , there has been an increase in user activity following the CFTC filing lawsuit against binance earlier this week . Despite claims from some deeming these accusations as false , users have reported difficulty off-ramping during this period with some experiencing delays in cashing out . It remains uncertain what will happen next with regards to these issues and how binance will respond moving forward .