By George Ward
The world’s largest crypto asset custodian, Binance, has announced the restoration of USDC withdrawals. Nonetheless, users continue to worry over the collapse of FTX as they fear that centralized exchanges (CEXs) face an uncertain future.
Binance Restarts USDC Withdrawals After Hours of Suspension
On Tuesday, the Binance exchange temporarily suspended the withdrawals of USDC stablecoin on its platform. But after a couple of hours, the giant exchange enabled the token’s withdrawals again.
However, the action did not go without causing panic or raising concerns from its users. In the wake of the FTX collapse, investors have been wary of all actions that unfold in the crypto markets, especially from crypto custodians.
In that light, the sudden suspension of USDC sparked concerns as many users fear the giant exchange might be going through an internal crisis. However, according to reports, the CEO of Binance, Changpeng Zhao, CZ, cleared the air as he explained what ensued.
CZ stated that the suspension was merely to allow the firm to execute a token swap.
Furthermore, he explained that the exchange recorded an enormous withdrawal request for USDC (totaling about $1.9 billion). CZ further said before Binance can execute USDC transactions, they usually have to swap PAX/BUSD tokens to USDC.
Unfortunately, the bank overseeing the trade was closed at that moment. Hence, they had to wait for the bank to resume operation before they could continue to process other USDC withdrawal orders.
However, users could withdraw other crypto assets during the suspension, as only USDC was affected. Nonetheless, the giant custodian lifted the suspension after about 8 hours.
Users Continue To Agitate Concerning The Stability Of CEXs
Despite Binance’s restoration of USDC withdrawals, users still showed concerns over the safety of their funds on CEXes. The fear was fueled by the recent collapse of the FTX exchange, which cost many investors their funds.
Meanwhile, a court in the Bahamas recently ordered the arrest of Sam Bankman-Fried, the ex-CEO of the failed FTX exchange. He was reportedly remanded in a correctional facility in the state and was denied a bail option.
According to reports, the US authority charged him with high-level fraud and money laundering. Meanwhile, the leading exchange’s suspension of USDC withdrawals shocked many users.
That’s because Celsius, Terra, 3AC, and other exchanges that crashed initially suspended withdrawals before announcing their bankruptcy. However, as the Binance CEO stated, the firm is healthy, and operations are running smoothly.
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