Binance’s Massive Outflow Resulted in the Suspension of Withdrawal

• Binance users are unable to withdraw their asset holdings from the exchange.
• Following Binance’s guilty plea, the platform saw a massive outflow that surpassed $1 billion in one day.
• The community withdrew assets in response to Binance CEO Changpeng Zhao’s resignation.

The world’s largest crypto exchange, Binance, has been creating shockwaves in the crypto economy with Changpeng Zhao’s guilty plea and his subsequent resignation. Though the following 24 hours saw massive outflows from Binance, customers are unable to withdraw their holdings at present.

Edward Farina, the CEO of Alpha Lions Academy, a prominent player in the blockchain industry, recently took to X (formerly Twitter) to bring attention to the current inconsistencies in the Binance platform. While Binance permits deposits, the same payment method restricts customers from using card services to withdraw assets.  

Farina’s tweet came after complaints from Binance’s clients who were unable to withdraw their money from the exchange. While the customers try to use withdrawal services, they receive a message that reads,

“We are currently unable to provide card withdrawal services. We are working to resolve this. In the meantime, please use the alternative withdrawal channels that are available.”

After a long period of regulatory scrutiny, Binance and Changpeng Zhao pleaded guilty to violating anti-money laundering laws in a $4.3 settlement. Subsequently, Zhao declared his resignation, introducing the new CEO, Richard Teng, who formerly served Binance as the Global Head of Regional Markets.

The crypto community has been shaken by this series of incidents involving Binance and Zhao, with Cardano founder Charles Hoskinson describing it as the “end of an era.” Following these events, the ecosystem saw a massive uptick in withdrawals, surging above $1 billion within the same day. The net overflow of the exchange in the last seven days amounted to $703.1 million.