In the wake of the $1 Billion cash outflow from Binance, the world’s largest crypto exchange is experiencing a challenging period. The exchange is warning its staff to expect turbulent times ahead as the exchange is going through a challenging period. Here, it is pertinent to mention that this cash outflow is greater than the collective outflow of all centralized crypto exchanges over the past 24 hours.
The Blockchain Intelligence Platform Nansen reports that the exchange saw a difference between the value of assets flowing in and out on Monday. Remember that this huge outflow is nine times larger than the second-largest outflow and is also the largest since Nov 13.
This is an alarming sign for the exchange, as it indicates that investors are losing faith in its operations. Despite the fact that the exchange has been in operation since 2017, this outflow of assets is a huge cause for concern
The primary reason for this increase in withdrawals may be the bankruptcy of FTX, a rival crypto exchange. This has prompted other crypto exchanges to provide investors with proof that their assets are safe. Earlier, there were reports that US prosecutors were thinking of leveling criminal charges against Binance exchange for possible money laundering.
Such news is likely to have further accelerated the outflow of funds from crypto exchanges as people rush to protect their assets
