Overview
• Binance withdrawals have surged to $852 million in 24 hours amidst regulatory woes.
• CFTC filed a lawsuit against Binance on March 27th for violations of operating a non-compliant cryptocurrency exchange.
• Some users are reporting difficulty in off-ramping during this period via social media.
Binance’s Withdrawal Surge
Binance has experienced withdrawals of $1.6 billion since Monday, data from Nansen, shared by Reuters, showed. The Commodities Futures Trading Commission (CFTC) filed a lawsuit against the exchange on March 27th for multiple regulatory violations related to operating a non-compliant cryptocurrency exchange. As a result, Binance users withdrew $1.6 billion following the court filing earlier this week – with more than half of that or $852 million leaving the exchange in the last 24 hours according to Reuters. 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 stated that although there was an increase in withdrawals due to regulatory action it was still less than what was seen in December 2022 when fears over solvency were at their peak. CryptoQuant CEO Ki Young Ji tweeted that Binance processes billions in deposits and withdrawals daily and included charts which showed Bitcoin reserves trending upwards while Ethereum reserves were decreasing. He also criticized an article by The Wall Street Journal as „ridiculous FUD“.
Off-Ramping Problems
Some Binance US users reported having difficulty off-ramping funds via ACH payments despite initiating them over a week ago with no results yet according to one post on Reddit’s r/BinanceUS page—the user said customer service could not help either and recommended using Skrill or Neteller instead as these seemed faster but came with higher fees and worse rates overall compared to ACH transfers. Another user said they had problems withdrawing USDT after depositing Bitcoin into their account without any success when contacting customer service about it despite various attempts throughout several days—they ultimately resorted to using Skrill again even though it costed them more money due to bad rates and high fees involved with such transactions from certain wallets as well as delays associated with sending money internationally sometimes taking up to two weeks before being received by recipients depending on where they are located geographically speaking—this particular user claimed they received their funds within 10 minutes after sending them through Skrill though which is much faster than other methods available currently including traditional wire transfers like Western Union or MoneyGram which can take days if not weeks before reaching its destination due primarily because international regulations often complicate matters further when trying sending money across borders even electronically via digital platforms such as PayPal etcetera so be sure you know your options before deciding on how best proceed when attempting move funds around globally otherwise you may end up waiting longer than expected or paying too much depending upon circumstances encountered during process so always do your research beforehand just case!
Impact of Regulatory Actions
The CFTC’s action has led some users who may have been previously holding crypto assets in the platform for speculation purposes think twice about keeping their holdings there making them consider converting their digital wealth back into fiat currency instead – therefore leading to increased demand for withdrawal services provided by exchanges like Binance potentially causing potential congestion issues especially during times intense market volatility such short squeeze event recently caused by GameStop stock surge amongst other factors contributing overall market sentiment lately – however many experts agree that while some traders may indeed be cashing out temporarily until situation resolves itself most investors will likely remain active participants regardless given wider industry outlook remains positive long term given increasing adoption trends we’re seeing all around world today particularly amongst institutional players like pension funds hedge fund managers etcetera so don’t panic just yet!
Conclusion
In conclusion, Binance withdrawals have been surging lately amidst regulatory actions taken against the company by the CFTC—with more than half of that amount or $852 million leaving the exchange in the last 24 hours alone according to data from Nansen shared by Reuters—and some customers are reporting difficulties off-ramping their funds during this period via social media outlets like Reddit and Twitter while others have deemed any inference of mass withdrawals as FUD (Fear Uncertainty & Doubt). Despite these challenges however many experts believe most investors will remain active participants regardless given wider industry outlook remains positive long term given increasing adoption trends we’re seeing all around world today particularly amongst institutional players like pension funds hedge fund managers etcetera so don’t panic just yet!