Binance Temporarily Pauses Withdrawals
“These are 1:1 conversions, no margin or leverage involved. We will also try to establish more fluid swap channels in the future. In the meantime, feel free to withdraw any other stable coin, BUSD, USDT, etc,” Zhao added in a follow-up.
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While an exchange pausing withdrawals is not inherently a bad thing, exchanges that have made that decision in the past have not fared well. Crypto exchange Celsius paused withdrawals for its 1.7 million users this past June, before filing for bankruptcy the following month. Binance, on the other hand, paused withdrawals around the same time as Celsius, but only temporarily as the value of Bitcoin fell while claiming in a tweet that the pause was “due to a stuck transaction causing a backlog.”
Binance’s current withdrawal pause comes as investors are already skittish as fellow cryptocurrency exchange FTX faces ongoing fallout.