Binance resumed withdrawals on Tuesday after a brief outage caused by “some technical issues.” However, netizens claim that this is due to executives siphoning funds from the platform.
At around 2:36 a.m. UTC Tuesday, Binance wrote to X that it was aware of withdrawal issues on its platform and told users it was working on a fix to return the service to normal “as soon as possible.”
Just three minutes later, the exchange identified the issue and announced that withdrawals were “resumed and being processed.”
The exchange said the issue was technical and was quickly resolved, but user follow-up on social media indicates the disruption lasted about 20 minutes. Some critics alleged fraud and urged customers to withdraw their funds, while others warned of a “run on” scenario similar to the final days of the crashed exchange FTX.
Binance withdrawal suspension triggers online barrage
According to a post citing blockchain data circulating on X, there was a large outflow from Binance wallets late Tuesday night. One shared message claimed that billions of dollars are being spent in stablecoins like Tether. $USDT And Top Cap Cryptocurrency leaves exchange addresses in a suspicious manner.
The post also accuses Binance executives of wrongdoing, but this has not been proven as the exchange has not reported any solvency issues. The exchange also did not disclose any specific technical issues, although some observers have noted that such problems are common in crypto trading.
Bitcoin and Ethereum have both seen price declines of more than 23% in the past three months, with the former falling to price levels last seen 10 months ago. Market downturns may have prompted traders to swap their tokens. $USDT However, some on crypto Twitter believe there was fraud, as in the case of FTX, led by Sam Bankman Fried.
A November 2022 report revealed weaknesses in the balance sheet of Alameda Research, a trading company affiliated with Bankman Freed. Alameda has a lot of $FTTa token created by FTX that is said to be intended to function as a stock, similar to Binance’s BNB.
$FTT had a market value, but liquidity was limited under stress, so a drop in price would undoubtedly have threatened Alameda’s financial position. After this report, Binance’s then-CEO Qiao Changpeng said that the company would be liquidated. $FTT Collection.
As concerns about the cryptocurrency market pile up on the exchange and Alameda’s business, $FTTThe price of FTX plummeted, forcing customers to withdraw their funds from FTX. After billions of dollars were leaked from the platform in a matter of days, FTX decided to completely halt withdrawals.
Later Cryppolitan reported The exchange faced an $8 billion shortfall, which has since left a scar on many investors. Currently, a service outage on a large exchange is enough to fill social conversations with comments of fear, anxiety, and doubt.
“‘We are currently using your liquidity to meet our own margin calls. Please wait.’ The board refers to this as ‘gate the hard.’ Please rest assured. The “correction” arrives exactly 15 minutes after the market bottom is printed and the insiders are repositioned. Not keys, not coins, not exits,” one X user said, mocking Binance’s announcement.
Cryptocurrency market volatility fuels suspicions
The Binance incident comes amid a market turmoil that began over the weekend, when Bitcoin fell below $76,000 for the second time in a year. According to CoinGlass data, $2.56 billion in liquidations occurred between Saturday and Sunday.
Mr. Chao wrote a statement on X Monday rejecting what he called “pretty imaginative FUD.” He blasted claims that Binance sold large amounts of Bitcoin to cause the crash, claiming that wallet balances change when users withdraw, rather than due to internal dumping.
The former Binance CEO also denied accusations that he derailed a “supercycle” in cryptocurrency prices. If he had that kind of influence, he joked, “he would use it differently.”
Other accusations against Mr. Zhao also included market practices in the Tron ecosystem, in which Mr. Zhao was accused of collaborating with Tron DAO founder Justin Sun to manipulate the market. A woman claiming to be San’s former partner suspect Tron and Binance worked together to pay influencers to influence the price of the token.
“I am willing to fully cooperate with the SEC’s investigation and provide all relevant WeChat chat records and evidence provided by his employees proving market manipulation activity,” the woman’s statement read.
