Binance Stops Withdrawing Popular Stablecoin After FTX Crash

Crypto exchange Binance has suspended the withdrawal of the USDC stablecoin for the duration of the “token swap”. The move comes as investor concerns rise about Binance’s stability following the collapse of rival exchange FTX, as well as reports of a potential criminal investigation by the US government, CNBC reported.

As stated by Binance CEO Changpeng Zhao, the exchange is seeing an increase in withdrawals of USDC, a cryptocurrency known as a stablecoin, as it is pegged one-for-one to the US dollar. USDC is used by investors to trade various cryptocurrencies without having to transfer money back to US dollars. If traders withdraw USDC from Binance, it may be due to transferring them to another platform.

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Binance has recorded $1.6 billion in outflows from its platform in the past 24 hours, according to Nansen’s announcement early Tuesday. In total, there are over $60 billion worth of assets on the Binance platform.

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