Binance Withdrawals Surge after the FUD on its Proof of Reserve Report

• Binance’s net outflows reached $902 million in the last 24 hours.
• Binance CEO CZ tweeted, “Ignore FUD. Keep building.”

The world’s largest cryptocurrency exchange by trading volume, Binance, flooded with withdrawals on Monday following several news stories about the controversy among the Department of Justice (DOJ) charges. In addition, Binance native token BNB has experienced significant declines in its market cap. 

According to the CoinDesk report, Binance’s net outflows reached $902 million in the last 24 hours. Also, BNB’s price declined by over 8% to trade at $266, and BNB has continued to lose value in the past week, showing a weekly decline of roughly 10%.

Further, BNB’s market cap decreased by around 7.5% to $41 billion. However, BNB has a 24 hours trading volume of $974 million, which increased by around 120% in the previous day, as per CoinMarketCap.

Criticisms Over Binance 

In the wake of the FTX demise, centralized exchanges are being monitored by regulators and disclosing proof of reserve reports. Also, investors grew warier about holding their funds on centralized exchanges.

Following that, on December 7, Binance released its proof of reserve report, which prompted social media turmoil. Later, on December 12, Reuters published a story about Binance that US authorities whether to file charges against the crypto exchange and its CEO ‘CZ’ for alleged financial crimes. 

However, Today, Binance has addressed the accusations made by Reuters by asserting that their platform is effectively secured against any instances of money laundering, and these criminal accusations do not prove in the cryptocurrency industry. Also, Binance CEO CZ tweeted, “Ignore FUD. Keep building.”