Binance, the biggest cryptocurrency exchange in the world, said on Tuesday that it “temporarily delayed” USDC stablecoin withdrawals while conducting a “token swap.”
Changpeng Zhao, the chief executive officer of Binance, expects withdrawals to continue when New York banks reopen, allowing the exchange to convert BUSD for fiat cash and eventually USDC.
In September, Binance executed a “BUSD auto-conversion” in which users’ USDC, USDP, and TUSD stablecoins were exchanged for BUSD, a fiat-backed stablecoin co-founded by Binance and Paxos, the New York-based issuer of the stablecoin.
Users may still withdraw other stablecoins, such as BUSD and USDT, according to Zhao, and deposits remain unaffected.
The crypto analytics company Nansen tweeted on Tuesday that more than $2 billion worth of cryptocurrency departed Binance in a single day, the largest 24-hour outflow since June.
In the wake of FTX’s demise, investors are becoming more concerned about centralised cryptocurrency exchanges.
In the meanwhile, Binance has dismissed reports of a potential criminal probe by the United States authorities.
Tuesday evening in Hong Kong, BNB, Binance’s native cryptocurrency, was trading down 3.7%, according to statistics from CoinMarketCap.
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