Binance has witnessed a spike in customer withdrawals since the weekend. Because there are rumors about the stock market surrounding money laundering, drug conspiracy lawsuits and bankruptcy claims. Exchange CEO Changpeng Zhao downplayed user concerns, saying that external factors led to BNB and the exchange’s FUD.
CZ talked about FUD on the stock market and BNB
Exchange CEO Changpeng Zhao argues that external factors are creating fear, uncertainty and suspicion (FUD) among exchange users and BNB holders. Binance is the world’s largest cryptocurrency exchange by volume. However, lately, the stock market has been in trouble amid money laundering concerns. This is why Binance is witnessing a massive increase in the number of customers withdrawing from the platform.
cryptocoin.com As you follow, since the collapse of Sam Bankman-Fried’s FTX exchange, all eyes have been on Binance. For this reason, the cryptocurrency exchange is at the center of the discussions. Binance witnessed a spike in withdrawals last month, with $3 billion worth of cryptocurrencies leaving the exchange in a 24-hour period.
Binance CEO Changpeng Zhao expressed users’ concerns. However, he said the recent wave of FUD was due to external factors. The executive shared nine potential causes of uncertainty in a Twitter thread. In this context, he suggested that external factors triggered the fear among investors withdrawing funds from the stock market.
Forbes recently reported that Binance is currently under investigation for money laundering. At the same time, the crypto exchange assisted the US Drug Enforcement Administration in a drug conspiracy case. The platform found that it was used by an illegal drug dealer to launder money. Binance collaborated with law enforcement to assist with the investigation. Amid these developments, Twitter and social media platforms are rife with rumors that Binance has gone bankrupt.
Binance and CZ work to appease FUD
A recent development revealed that the CEO of the crypto exchange sends personal emails to every customer. CZ was talking about the FUD surrounding Binance in his message. However, despite the assurances of the exchange platform and the CEO, the number of attacks and exploits on BNB Chain can pose a challenge for users to trust the platform and its native token. BNB is trading at $246, up 1.34% on a daily basis at press time. However, the altcoin has lost about 11% in the past two weeks.