Binance’s ongoing “stress test” sees $3B outflow in 7 days – here’s…

Binance’s ongoing “stress test” sees $3B outflow in 7 days – here’s…


Users have withdrawn huge amounts of money binanceincluding USD coin USDC/USD and other stablecoins. Binance has already seen a net outflow of over $3 billion in crypto assets over the past seven days. to Nansen.

How it started: It all started on Monday when Binance experienced an unprecedented wave of withdrawals amid concerns over its Proof of Reserves report. According to blockchain intelligence platform nansen, net outflows – the difference between the total value of assets going in and out of the exchange – totaled a staggering $902 million in just one day. This marked a dramatic surge in investor sentiment away from the stock market and raised serious questions about their holdings.

Despite the fact that Binance is providing its public wallet addresses for added transparency, many investors are still unsure about the exchange’s level of transparency. In particular, the wallet balance does not reveal any details about possible liabilities from Binance.

To clear up some doubts, Binance requested a “Proof of Reserve” report from an accounting firm macerator to demonstrate the financial soundness of the company. The report showed that Binance had funds to cover over 100% of its depositors.

But these efforts still left critics unsatisfied. Investors should not be satisfied with the report, Douglas Carmichael, Professor of Accounting at Baruch College in New York and former Chief Auditor of the US Public Company Accounting Oversight Board. “I can’t imagine it answering all the questions an investor would have about adequate collateral.” Karmichael said Wall Street Journal.

Mazers made it clearr that their report does not guarantee the continued validity of Binance’s reserve fund and that it was merely a “snapshot” of Binance’s reserves at the time of the November 22 audit.

On Monday, Reuters reported that US prosecutors are analyzing criminal facts possible money laundering procedure against…


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