Tuesday saw a halt to USDC withdrawals following a spike in the number of investors attempting to cash out

Home » Tuesday saw a halt to USDC withdrawals following a spike in the number of investors attempting to cash out

Binance, a cryptocurrency exchange, revealed on Tuesday that withdrawals of USDC have been halted during a “token swap” period.

Without initially passing via a FIAT buffer currency, the process entails exchanging one cryptocurrency for another.

The withdrawals might have been caused by erroneous worries about the exchange’s reserves.

The exchange has observed a spike in withdrawals of USDC, according to Binance CEO Changpeng Zhao, who suggested on Tuesday that this could be because investors are attempting to transfer their holdings to other exchanges.

However, Binance is in the process of converting more USDC to either PAX, another stablecoin, or BUSD, the company’s own token, but this process will take some time since a bank in New York that hasn’t yet been opened needs to be used for the re-routing process.

Any currency deposits are unaffected, and withdrawals for other stablecoins like BUSD and Tether function as expected without any issues or limitations.

Additionally, this is one of the first instances of “withdraw freeze” employed by Binance, a highly criticized tactic that signaled the demise of cryptocurrency lender Celsius Network.

The now-defunct cryptocurrency enterprise of Sam Bankman-Fried, who was detained on Tuesday in the Bahamas, attempted a similar tactic with FTX.

On its platform, Binance presently has assets valued at $60 billion, but between Monday and Tuesday, the business saw withdrawals totaling $1.6 billion, according to cryptocurrency analytics provider Nansen.

Withdrawals typically indicate a lack of confidence in cryptocurrencies, which is fair given that FTX failed owing to improper handling of customer funds.

An inquiry conducted by the US Department of Justice may also focus on Binance and result in legal action.

The temporary withdrawal freeze has not been addressed by Binance, and the company has not felt the need to reassure investors about it. Instead, it has said matter-of-factly that it was a standard procedure.

Seeking your next cryptocurrency casino? Check out Need For spin,  BetWinner or Bitcasino.io

Newest Casinos
5.0 rating

Welcome Bonus 100% Up To 500€ + 200 Free Spins

Weekly Cashback 15%
Live Cashback 25%
3.0 rating
50% No Rules Bonus Use Code: BOUNDLESS

40% No Rules Bonus Use Code: FEARLESS
Additional: 20% with CRYPTO DEPOSITS!

333% Reload Bonus
Additional 111% with CRYPTO DEPOSITS! Use Code: ENDLESS444

500%* Bonus & 500 SPINS
Get your 500% low wagering Bonus and additional 500 FS! Use Code: 500INSTANT
3.8 rating
Welcome package Up To 500€

1st Deposit 100% up to 100€ + 50 FS

2nd Deposit 70% up to 200€

3rd Deposit 30% up to 200€ + 50 FS
5.0 rating
Receive 20% cashback up to 10,000 USDT

Welcome Boost: Win 10% extra for 10 minutes Add 10% to all winnings when you play Wanted Dead or a Wild
4.8 rating
First Deposit Bonus 100% up to €200 + 70 free spins.

Second Deposit Bonus 50% up to €150 + 70 free spins

Third Deposit Bonus 50% bonus up to €200 + 50 free spins.

Fourth Deposit Bonus 40% up to €250 + 40 free spins.

Fifth Deposit Bonus 60% up to €200 + 70 free spins