Cryptocurrency Crisis Worsens

On December 13th, it is reported that Binance, the world’s largest cryptocurrency exchange, had 1.9 billion withdrawals in the past 24 hours. The cryptocurrency market crisis brought about by the FTX collapse is still intensifying. Blockchain data firm Nansen said on Tuesday that the net outflow of digital currency from Binance was h about1.9billionwithdrawalsinthepast24hours.Thecryptocurrencymarketcrisisbroughtaboutbythe

FTXcollapseisstillintensifying.BlockchaindatafirmNansensaidonTuesdaythatthenetoutflowofdigitalcurrency

from Binancewasworthabout3.7 billion over the past week, and $1.9 billion was withdrawn in the past 24 hours. Binance said Tuesday that it has temporarily suspended withdrawals of USDC stablecoin. Ironically, Binance also published a so-called “proof of reserves report” from auditing firm Mazars on its media platform last week, saying its Bitcoin reserves exceeded customer deposits for at least one day in November, in an attempt to reassure investors about its financial situation. Nansen, however, said the withdrawal demonstrated customers’ concerns about Binance’s reserves. And it warned that the cryptocurrency market crisis is worsening further and that “Binance is facing an increase in user withdrawals due to the growing uncertainty over its reserve reporting.” It was reported on Monday that Binance is facing a U.S. Department of Justice investigation, focusing on whether it violated U.S. anti-money laundering laws and sanctions.
FTX founder Sam Benjamin-Fried was arrested in the Bahamas on Monday, and the U.S. SEC charged him with defrauding investors on Tuesday. The Southern District of New York Attorney’s Office charged him with multiple counts of wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering. Some legal experts say Sam could face life in prison if he is prosecuted for wire or bank fraud. Previously, Ponzi scheme mastermind Bernie Madoff was sentenced to 150 years in prison for his massive scam. It seems that Changpeng Zhao of Binance is not far from going to jail. Miles Guo had warned earlier that Binance was controlled by the Chinese Communist Party, and that it was operating completely illegally by handing over user information to Beijing and using it as a tool for money laundering.