Binance CEO says deposits returning to exchange

Deposits are returning and “things seem to have stabilized” at Binance, its chief executive said on Wednesday, a day after it had a sharp increase in withdrawals and paused some stablecoin transactions, Reuters reported.

On Tuesday, blockchain data firm Nansen said that Binance had seen withdrawals of $1.9 billion in the last 24 hours and that the exchange said it “temporarily paused” withdrawals of the USDC stablecoin.

“Things seem to have stabilised,” CEO Changpeng Zhao wrote in a tweet. “Yesterday was not the highest withdrawals we processed, not even top 5.”

The $1.9 billion of withdrawals of tokens based on the ethereum blockchain marked the largest daily outflow over a 24-hour period since June 13, the Nansen data showed.

How crypto exchanges such as Binance and its now-bankrupt former rival FTX handle customer deposits is under close scrutiny from users and regulators.