Binance Temporarily Halts USDC Withdrawls
World's largest cryptocurrency exchange Binance has "temporarily suspended" withdrawals of USDC stablecoins while it conducts a "token exchange" the company said on Twitter on Tuesday.
In September, Binance conducted an “automatic BUSD conversion“, in which users’ stablecoins, USDC, USDP and TUSD, were exchanged into BUSD, a stablecoin backed by fiat money founded by Binance and Paxos (the New York-based issuer of the stablecoin).
Zhao said users can still withdraw other stablecoins, including BUSD and USDT, and deposits are unaffected.
On Tuesday, cryptanalysis firm Nansen claimed in a tweet that over $2 billion worth of cryptocurrencies left Binance in a single day, the highest 24-hour outflow since June.
Binance’s halt on USDC withdrawals comes amid growing investor concerns about centralized crypto exchanges following the FTX crash.
Meanwhile, Binance is facing possible money laundering charges from the US government, which the exchange denies.