Justin Sun Withdraws 100M BUSD from Binance: Does This Mean the End of the Panic?
Tron ecosystem founder Justin Sun has withdrawn 100 million BUSD stablecoins from Binance crypto exchange and moved them to Paxos Treasury, in line with Binance CEO Changpeng Zhao (CZ) yesterday's announcement that the $100 million transferred by Justin Sun to Binance is part of deploying BUSD to Tron via cross-chain swaps. According to Etherscan, $100,000,311,866 in Binance (BUSD) was transferred from Binance Wallet 15 at 0x9f84 at 08:56 UTC. On-chain platform Lookonchain also confirmed that Justin Sun has once again withdrawn 100 million BUSD from Binance. In addition, on December 13, the founder of Tron withdrew almost 33.91 million BUSD and 15.43 million USDT from Binance, after which he transferred BUSD to Paxos Treasury and USDT to Circle. Recall that yesterday's operations of Sana provoked massive sales and cascading withdrawals from Binance. However, Justin Sun later invested $100 million in Binance to ease market fears. By the way, yesterday, the world's largest cryptocurrency exchange Binance experienced a record daily outflow of funds, which amounted to $1.14 billion. According to CryptoQuant, 40,353 bitcoins and 278,017 Ethereum tokens were withdrawn. But today, CZ is already saying that the deposits of the crypto giant investors are gradually returning. Moreover, this data is not comparable to the critical mass withdrawals that were processed during the Terra-LUNA or FTX crisis. It assures clients of the financial health of the crypto exchange and client crypto assets.
CZ Warns Binance Staff About Difficult Months for Crypto Exchange
Binance CEO, Changpeng Zhao (CZ), sent out an internal memo to employees warning them that “the next few months will not be easy.” According to Bloomberg, the CEO said that despite the "a lot of extra scrutiny and tough questions" that have arisen since the collapse of rival exchange FTX, he expects his marketplace to "get past this challenging period" and that it will "be stronger for having been through it." Zhao also mentioned the recent intense cryptocurrency exchange scrutiny that many crypto companies have already faced. However, regulators began to pay special attention to Binance precisely after the collapse of FTX and the arrest of its CEO. With Binance's record daily hot wallet withdrawals yesterday, the crypto exchange really needs to be prepared for challenging scenarios. In addition, several high-profile figures in the cryptocurrency world have spoken out against Binance, saying that its recent certification, which showed that the cryptocurrency exchange has more than enough BTC to cover all client deposits, was inadequate. And former U.S. Securities and Exchange Commission (SEC) official John Reed Stark stated that Binance’s recent confirmation of reserves report does not address the effectiveness of internal financial controls and does not express its state, therefore, the numbers presented in it cannot be used as an argument.
SBF Will Not be Able to Get Out on Bail and Remains in the Bahamas
A Bahamian judge on Tuesday denied bail to founder and former CEO of bankrupt cryptocurrency exchange FTX, Sam Bankman-Fried (SBF), hours after U.S. prosecutors said he defrauded customers, embezzled billions of dollars and violated laws on the campaign trail in what has been called one of the biggest financial scams in America. SBF was imprisoned in the only prison in the Bahamas, Fox Hill. According to human rights reports, the facility is clearly overcrowded and has unsanitary conditions. The Southern District of New York, which is investigating Sam, the bankruptcy of FTX and its trading subsidiary Alameda, has filed eight criminal charges against SBF, including wire fraud and conspiracy using customer funds. If found guilty on all eight counts, he could face up to 115 years in prison. On top of this, the US Securities and Exchange Commission (SEC) accused the SBF of "organizing a scheme to defraud investors in FTX shares": “We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto. The alleged fraud committed by Mr. Bankman-Fried is a clarion call to crypto platforms that they need to come into compliance with our laws.” — SEC Chair Gary Gensler said.