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Binance, the world’s largest crypto exchange by volume, is experiencing a wave of large outflows as traders seek to withdraw their coins.

According to crypto insights firm Delphi Digital, Binance saw more than $5 billion in net outflows on December 13th and 14th.

Delphi Digital says the large withdrawal flows could stem from the collapse of FTX and the low level of confidence in crypto exchanges that followed.

“Binance saw over $5 billion in net outflows between December 13th and December 14th.

This is the largest 2-day outflow since the exchange began providing proof of reserves on November 10.

As the US Congress holds hearings on the collapse of FTX, concerns about Binance are growing, leading to increased withdrawals.”

Source: Delphi Digital/Twitter

Binance has offered a proof-of-reserves report showing that all of its clients’ assets are backed 1-1, and it has been reviewed by global auditing firm Mazars. However, Mazars recently suspended its audit of Binance and reportedly cut ties with the crypto industry.

The company announced.

“Mazars has ceased providing ‘Proof of Reserves Statements’ to cryptocurrency entities due to concerns over the public’s perception of these statements.”

Binance CEO Changpeng Zhao (CZ) claims that all of the exchange’s assets are one-for-one secured.

“People can withdraw 100% of their holdings on Binance. We will not have a problem any day. So 100% of users withdraw 100% of the assets, we’d be fine.

This is very different for traditional financial people, because banks operate on fractional reserves and traditional regulators, many of them may think that it is okay for crypto businesses to operate on fractional reserves. That is not good. With crypto, there is no central bank that prints money to bail out banks when there is a liquidity crisis. So crypto businesses need to store users’ assets one by one, and that’s what we do. It’s very simple.”

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Featured Image: Shutterstock/Andrea Danti/Fotomai/Natalia Siyatovskaya



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