Binance Refutes Huge Outflows Allegations, Says Data is Misreported
Binance, the world’s largest cryptocurrency exchange, is facing mounting rumors on social media that funds are flowing out of it at unprecedented rates.
“Get your funds off of Binance. -$17bn of withdrawals in the last 7 days. There is a risk they will become insolvent, and you won’t be able to get your money out. Withdraw now or cry later,” wrote a popular crypto analyst on X. Although the figures range from $10 billion to $17 billion, many others reiterated this opinion.
The exchange was quick to respond, saying that data from third-party sources shows discrepancies and that it is to be “restored.”
Moreover, Binance said that they believe that “regularly conducting withdrawal tests on all trading platforms is a positive and healthy practice. When performing these tests, please double-check the address carefully. Confirm, then withdraw.”
They even went so far as to suggest an annual “withdrawal day” that should be established for all platforms to thoroughly verify the authenticity of their assets.
Meanwhile, the Proof-of-Reserves report on their official website reveals that all cryptocurrencies are, at the time of this writing, overcollateralized, meaning that there is more USD backing their reserves than crypto – a sign of health.
Binance Proof of Reserves. Source: Binance
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