Binance Lost $12 Billion in Less Than 60 Days

    A recent analysis by Forbes showed that over $12 billion, equivalent to 25% in assets have flowed out of Binance over the past two months, led by BUSD and BNB.

    The outflow of cash from Binance is worse than the CEO Changpeng Zhao indicated last month, and it’s become considerably more severe since then.

    According to Forbes, the value of Binance’s BNB token dropped by about 30% over the past two months, 51% lower than reported by the exchange on November 10, 2022.

    Data pulled from Binance-owned CoinMarketCap on January 9, 2022, showed that 31% of Binance’s holdings are made up of BNB, contradicting the lower percentage Binance reported on November 2022.

    Source: CoinMarketCap

    This 31% is also lower than the estimates of other data providers, Nansen and Defillama. If the above estimate is correct, Binance will lose a significant amount of its asset base through future BNB withdrawals.

    Also in the report, there was a large discrepancy in Bitcoin holdings of Binance by cybersecurity firm CER.LIVE, which was more than double CoinMarketCap’s $4.3 billion estimate.

    Source: CoinMarketCap

    BUSD’s $3 billion cash flow accounts for 15% of assets

    Besides the BNB outflow, Binance’s BUSD holdings plummeted on November 25 and December 14, 2022, as some whales swapped the stablecoin for USDC and USDT. As reported by Forbes, BUSD holdings fell by $3.5 billion on December 14, 2022, reducing the exchange’s asset holdings by 15%. Meanwhile, USDT and USDC holdings increased.

    Wintermute, Jump Crypto market maker, and Justin Sun of Huobi Global withdrew a notable amount of BUSD between December 12 and 13, 2022. Sun previously deposited $100 million worth of assets on the platform.

    Binance is also alleged to have sent $232 million in BUSD to Binance.US to enhance the US branch’s financial strength.

    Adding to Binance’s bad luck, its users have lost 40-50% of their MATIC, APE, and GALA crypto assets since November 2022.

    Is CZ still the white knight of crypto market?

    The mass withdrawal took place after the collapse of the FTX exchange.

    FTX did not have enough liquid assets to make withdrawals as early as November 2022, leading to its collapse on November 11, 2022. Its former CEO, Sam Bankman-Fried, is facing eight counts in the United States, allegedly draining FTX assets.

    Following the collapse of FTX, CZ launched a relief fund to help crypto companies affected by the crypto winter. These actions and several others have made him the savior of crypto market.

    However, CZ’s absence following Zhou Whei’s departure in June 2021 has raised many questions about his power to spend money that may not be his to restock Binance and prevent the dreaded bank run scenario.

    (Reference: BeInCrypto)

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