Investors withdrew $1 billion from Binance in one day

Investors withdrew more than $1 billion from the Binance cryptocurrency exchange in one day amid declining confidence in digital assets and fears that the US will launch an investigation into Binance amid the collapse of another cryptocurrency exchange, FTX, and the arrest of its head. 

According to Binance executive director Changpeng Zhao, the net outflow of investments on Tuesday amounted to $1.4 billion. At the same time, the figure exceeded $3.6 billion in seven days.

The outflow of capital indicates an increase in nervousness in the crypto market, which began after the collapse of the FTX. Yesterday, the founder of this platform, Sam Bankman-Fried, was detained in the Bahamas at the request of the United States authorities. The US authorities have opened a criminal case, suspecting Bankman-Fried of fraud and manipulation of cryptocurrency prices.

Meanwhile, despite such a global withdrawal of funds, Binance continues to work in the usual mode. Representatives of the company stated that it has assets worth more than $ 60 billion at its disposal, which is enough to compensate for outflows. At the same time, the company does not disclose the size of its debt obligations, which complicates the process of assessing its financial stability.

In general, over the past month, investors have withdrawn a record number of bitcoins from cryptocurrency exchanges amid concerns about the safety of their assets.