Withdrawal of assets and open investigations: The crypto giant Binance is trying to calm down, but investors are worried about its situation
| Erez Raviv, Devar News
, the world’s largest crypto arena, is facing a wave of asset withdrawals by its customers and open legal investigations. In recent days, the amount of currency reserves that should be linked to the dollar have decreased by 5 billion dollars. At the same time, last week the company faced asset withdrawals of more than 6 billion dollars, of which about 3 billion in a single day. About half of the crypto assets held by the company are in the BUSD currency, and in another currency in its issuance called .
The accounting firm Mezers, which prepared for Binance a “Proof of Reserves” – a report inferior in quality to a full book audit – received a lot of public criticism. The company removed from the web 4 days ago all the reports it prepared for crypto companies, and announced that it would no longer work with companies in the field Due to “the manner in which its reports are received by the public”.
The crypto currency BNB fell by about 15% in the last week, after the owner of the Arena. Fried should soon be extradited to the United States from the Bahamas, and when questioned he will be able to provide a lot of information about his connections with Binance, one of the main investors in FTX in its infancy, and his connections with its controlling owner Changfeng Zahu.
Even before the collapse of FTX, Binance concentrated more than half of the world’s crypto trading, according to the reports of the trading arenas. Trading volume data tends to be inflated through automated insider trading of the trading platforms, so there is no way to verify these reports.
Is Binance too big to fail? The US Department of Justice is debating whether to file charges against the company for money laundering and violation of international sanctions, according to Reuters.
The Russian drug market “Hydra” was able to receive payments of 780 million dollars with the help of Binance, until the site’s servers were seized last April, according to another report. In “Hydra” they advised customers to use Binance due to the anonymity it allowed until about a year ago, with the help of which payments in the billions of dollars were made to criminal organizations or entities under international sanctions.
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