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Crypto exchange Binance freezes withdrawals of stablecoin USDC as rattled investors pull $2 billion in funds
George Glover Dec 13, 2022, 6:40 PM
Binance Co-Founder and CEO Changpeng Zhao delivers a speech at the opening event of Europe's largest tech conference, the Web Summit, in Lisbon on November 1, 2022.
Crypto exchange Binance has paused withdrawals of the key stablecoin USDC, chief executive Changpeng Zhao said Tuesday. Patricia De Melo Moreira/AFP/Getty Images
Leading crypto exchage Binance temporarily halted withdrawals of the USDC stablecoin on Tuesday.
Customers have pulled over $2 billion in funds in 24 hours as concerns about its stability grow.
Questions about Binance's reserves and a potential investigation are in focus after FTX's collapse.
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Binance has temporarily paused withdrawals of a major stablecoin after customers pulled over $2 billion in funds, as worries about the crypto exchange's stability grow after the collapse of FTX.
The world's largest crypto exchange will freeze all withdrawals of USD Coin while it conducts a "token swap" to boost its holdings of the dollar-pegged token, CEO Changpeng Zhao said Tuesday.
"On USDC, we have seen an increase in withdrawals," the Binance boss, commonly known as "CZ", tweeted.
Binance has faced questions over transparency about its reserves and reports of an imminent investigation by US prosecutors in recent days, which have rattled some crypto investors in the wake of the collapse of now-bankrupt rival FTX.