Bitcoin withdrawals have skyrocketed as Binance recovers from a media storm and subsequent accusations of questionable activity.
Withdrawals from the largest cryptocurrency exchange Binance have surpassed $500 million in the last 24 hours, as its CEO calls it a “FUD.”
Data from on-chain tracking resource Coinglass shows that Binance’s BTC balance dropped by more than 30,000 BTC on December 12.
Czechoslovakia: FUD ‘absolutely disappointed’
Binance, the latest hotspot of fallout from the FTX debacle, has joined exchanges that have seen user funds flow out.
According to Coinglass, users have withdrawn 30,300 BTC ($515 million) in the 24 hours to date of writing, which is most of the week’s total of 40,150 BTC.
The abnormal behavior was revealed while fighting what Binance CEO Changpeng Zhao (aka CZ) has been covering up on social media as “FUD.”
As Cointelegraph reported, nerves initially frayed after a report in Reuters suggested that the exchange would become the target of a money laundering lawsuit in the United States.
Zhao denied this by sharing a statement from Binance refuting the report’s claims.
But then, reports of massive token withdrawals from Justin Sun, CEO and founder of TRON, escalated tensions.
Users promptly removed their own funds from their accounts, though Zhao’s critics were charged with reciprocity and Sun’s $100 million deposit on Binance. The temporary suspension of some withdrawals of Binance’s stablecoin, BUSD, was in progress at the time of writing.
“FUD, albeit utterly frustrating, helps us grow,” Zhao wrote in his most recent Twitter post on the subject:
“You can manipulate someone without revealing their name, which spreads awareness. It also helps unite its supporters because it creates a common defense alliance.”
The events mimic those prior to the FTX debacle, in which exchange users collectively took custody of their funds. But at that time, the BTC balance on Binance had already increased.
Binance BTC Balance – BTC/USD Chart. Source: Coinglass
BTC rebound relief targets $17,500
According to data from Cointelegraph Markets Pro and TradingView, BTC price action remained unaffected by the Binance panic, with BTC/USD surging to around $17,500 on the day.
Related: “The Biggest Week of the Year” – 5 Things to Know About Bitcoin This Week
BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView
Binance’s BNB token
, similarly bouncing from a short drop to around $250 – the lowest since November 22nd.
On social media, the old hands looked adorable in the ring.
“If you want to minimize the market impact on your BNB sales, I would buy one for $22!” Famous trader Pentoshi joked that FUD was accelerating BNB/USD’s weakness.
Hourly BNB/USD candlestick chart (Binance). Source: TradingView
The views, opinions, and viewpoints expressed herein are those of the authors alone and are not required to reflect or represent the views and opinions of Cointelegraph.