Crypto exchange Binance’s losses following the collapse of rival FTX are reportedly worse than the CEO suggested.
This is according to a Monday (January 9) analysis by Forbes, which said the world’s largest crypto company was “bleeding its assets”, losing $12 billion in less than 60 days.
Last month, Binance CEO Chanpeng Zhao tweeted about $1.4 billion in withdrawals, which jumped to $3 billion within hours, but said the situation had “stabilized.”
“Yesterday, I wasn’t even in the top five, not even the highest amount of withdrawals I processed,” he wrote. “We did more when LUNA or FTX crashed. Now the deposit is back.”
But things haven’t really stabilized, and the outflow of money from the company is accelerating, Forbes writes. Last Friday, a Binance customer netted him $360 million, the report said, citing data from crypto data firm DefiLlama.
Forbes writer Javier Paz writes that Binance is approaching a point where “by its own inertia” this “soft run” to the company could get worse.PYMNTS commented on Binance I asked for
Last month, PYMNTS wrote that investors and industry observers wanted reassurance that Binance was a different type of company than the failed FTX.
“Changpeng Zhao, a major cryptocurrency exchange and its founder and CEO, who played a key role in starting the death spiral of FTX Enterprises, said that Binance’s operational uncertainties and its cryptocurrency We face increasing scrutiny over our ability to pay,” PYMNTS wrote.
However, attempts to soften public confidence have proven difficult as Binance has been on the defensive since the demise of FTX.
“Ignore the FUD. Keep building,” Zhao recently tweeted to his 8 million followers, referring to the world of cryptocurrencies representing “fear, uncertainty and doubt.” .
Meanwhile, Binance’s U.S. business is grappling with regulatory hurdles as it seeks to acquire the assets of cryptocurrency firm Voyager Digital for $1 billion.
As PYMNTS pointed out last week, the U.S. Securities and Exchange Commission (SEC), the Texas Securities Commission, and the Texas Department of Banking have all challenged the move.
In the filing, the SEC detailed how Binance could complete a transaction of this magnitude, how it intends to protect client assets, and how it will rebalance its cryptocurrency portfolio. I’m looking for
Texas agencies said Binance.US and Voyager have not complied with state law, are not allowed to do business in Texas, and treat creditors in different states differently. opposed the sale.
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