Binance daily withdrawals double as users report problems off-ramping Binance daily withdrawals double as users report problems off-ramping
Binance withdrawals surge to $852 million in 24 hours amidst regulatory woes, with users reporting delays in cashing out.
2 min read
Updated: Mar. 29, 2023 at 7:14 pm UTC
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Binance has experienced withdrawals of $1.6 billion since Monday, data from Nansen, shared by Reuters, showed.
Binance users are reporting difficulty in off-ramping during this period via social media.
Nonetheless, others have deemed the inference of mass withdrawals as FUD.
The CFTC sues Binance
The Commodities Futures Trading Commission (CFTC) filed a lawsuit against Binance on March 27, accusing the exchange of multiple regulatory violations related to operating a non-compliant cryptocurrency exchange.
CFTC Chair Rostin Behnam told CNBC that Binance intentionally swerved U.S. laws while operating “a direct, clear method” to access the American market.
According to Reuters, Binance users withdrew $1.6 billion following the CFTC’s court filing earlier this week – with more than half of that, or $852 million, leaving the exchange in the last 24 hours. This figure is more than double the average daily withdrawal rate over the last two weeks, which was calculated at $385 million.
Research Analyst at Nansen Martin Lee said that although the last 24 hours saw a higher-than-expected withdrawal rate due to regulatory actions, it was still less than withdrawals seen in December 2022, when fears over the exchange’s solvency were at their peak.
CryptoQuant CEO Ki Young Ji said Binance processes billions in deposits and withdrawals daily. His tweet included exchange reserve charts for Bitcoin and Ethereum. The latter showed a downtrend in reserves, while Binance’s Bitcoin balance is trending up, culminating in a sharp uptick this week.
Young Ji continued by criticizing an article by The Wall Street Journal, which reported that Binance had experienced $2 billion of Ethereum outflows over the last seven days, and called it “ridiculous FUD.”
Users report problems off-ramping
Meanwhile, a post on r/BinanceUS described a cash withdrawal initiated over a week ago via the Automated Clearing House (ACH) network that has yet to arrive.
The poster said Binance customer service could not give definitive information about the hold-up while calling on others to share their off-ramping experiences at this time.
Several Redditors stated similar problems, with one saying the explanation given was that funds were stuck “in limbo” with the payment processor. Another echoed this response, stating that customer service told them they were “working diligently with our payment processor” to fix the delay.
@ParrotCapital warned his followers to transfer funds out in crypto and off-ramp elsewhere.
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Samuel Wan
Samuel Wan, a finance professional turned full-time crypto content creator, values individual autonomy and personal freedom in his pursuits.
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