Nansen says Binance saw $1.9 billion in withdrawals in 24 hours

According to data provided by Nansen, the cryptocurrency exchange Binance has seen withdrawals totaling $1.9 billion in the past 24 hours.

Blockchain data firm Nansen said on Tuesday that $1.9 billion was taken out of the world's largest cryptocurrency exchange, Binance, in the last 24 hours. Binance said it had "temporarily paused" withdrawals of the USDC stablecoin.
Binance's position as the top cryptocurrency exchange was solidified when its rival, FTX, went bankrupt. Last week, Mazars, an auditing firm, tweeted what is called a "proof-of-reserves" report. The report showed that on a single day in November, it had more bitcoin than customer deposits.
Nansen data showed that the $1.9 billion was the most money taken out of ether since at least June. It made up most of the $2.2 billion taken out of ether over the last seven days.
"Binance's withdrawals are going up because its reserve report is becoming less clear," a Nansen representative said.
A person who works for Binance said, "People put assets in and take them out every day for many different reasons." "All user assets at Binance are backed by the same amount of money, and Binance has no debt."
"We always have more than enough money to meet withdrawal requests," the spokesperson said.
CoinDesk, a crypto news site, said earlier that $902 million left Binance on Monday.
The government is already putting pressure on the exchange. Reuters reported on Monday that disagreements between prosecutors at the U.S. Department of Justice are delaying the end of a long-running criminal investigation into whether Binance is following U.S. laws and sanctions against money laundering.
Traders told Reuters that the report caused Binance's BNB token to drop by almost 4%.

The Nansen data came out at the same time that Binance stopped withdrawals of USDC. They said it was because of a "token swap," which is when people with digital tokens trade their crypto coins, usually over different blockchains.
Around 8:20 GMT, Binance's CEO, Changpeng Zhao, tweeted, "There have been more withdrawals on USDC."
In September, Binance said that it would automatically convert user balances and new deposits of USD Coin and two other stablecoins into Binance USD, its own stablecoin.
Zhao said on Tuesday that you have to use real dollars at a bank in New York to swap USDC for two other tokens, Paxos Standard and Binance USD. "It will be a few hours before the banks are open." "We think things will be back to normal when the banks open."