Binance Withdrawals Surge As Concerns About Its Reserve Report Spook Traders

Binance, the world’s largest crypto exchange by trading volume, endured a wave of withdrawals on Monday amid concerns about its proof of reserve report.

Net outflows, the difference between the value of assets arriving and leaving the exchange, hit $902 million in the past 24 hours, according to data by blockchain intelligence platform Nansen.

Binance’s net outflow has surpassed those of all other centralized exchanges’ in the last 24 hours, and is almost nine times larger than the second largest outflow.

However, the outflow “doesn’t seem notably anomalous,” Henry Fisher, an Arkham analyst, wrote in a Telegram chat, given that there are ostensibly $64 billions of assets on Binance.

Binance released a report by auditing firm Mazars last week claiming that its bitcoin (BTC) reserves are overcollateralized. Industry experts and recent reports flayed the document for its narrow scope, and on Monday, Reuters reported that U.S. prosecutors are mulling criminal charges for possible money laundering against Binance and its executives, including Zhao.

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