Binance withdrawals hit $1.9B in 24 hours | Hacker News Reader

Binance withdrawals hit $1.9B in 24 hours

reuters.com

31 pointsmfiguiere9 comments

This is sort of re-assuring: if CZ stole all the money (SBF Style) then they would not have handled almost 2Bn (2.7Bn if you include Monday's outflows...) in withdrawals so smoothly...

Just to put this in perspective, FTX was at the crunch time in serious negotiations to get enough liquidity to effectively hide the 8B$ hole they had.

The fact that Binance can handle this outflow which is small compared to their total holding proves nothing. Know what would prove something? An audit. But obviously that can’t do that, as it would expose them.

FTX stole 8bn. But it only took (I believe) 1.5bn in outflows before they had to suspend withdrawals. Nothing is guaranteed with Binance, but we know they already were at least 2x (ish) better capitalised than FTX were...

Binance liquidity displayed is still less than they extracted from FTX before they crashed. They took 2.5B just in payout from SBF. Binance could have literally have had 0$ in backing before this and still managed the current situation. So again, nothing that is currently public, nothing at all, would suggest that Binance is any different from the FTX scam. They could very easily do an audit if it’s not a scam, but they didn’t they hired a company who refused to do anything more than sign a document saying “using the process Binance prescribed, we saw this number which Binance told us we would see”. There are so many red flags that its difficult how anyone could not be entirely convinced that it’s just another scam.

But this is crypto so maybe they’ll keep it going for another half a decade before it implodes.

It doesn't prove anything.

They could have a $70b in total assets but $140b in liabilities. We don't know. They would still be able to handle $2B fairly easily.

But the fact that they paused USDC withdrawal means they're not backed 1:1 like they claimed to be.

Nothing is guaranteed (it amazes me we don't have some exchange offering actual signed off proof of at least main reserves).

That said, withdrawals have resumed and given Binances policy of treating USDC USDT and BUSD interchangeably they physically cannot maintain reserves for the TOTAL liability in EACH coin...

They treat all the big stablecoins as the same (you own "dollars" and you can withdraw using any stablecoin you like). So logically there isn't a a defined amount of USDC they should have.

They shouldn't treat stablecoins the same. Any one of them can collapse to $0.

And why do they have to even swap what the customer deposited? Doing something they wouldn't want to tell customers?

Whether they should or not doesn't really matter, they do and they're quite up front about it. If you use Binance you know what you signed up for. There is no dishonesty there.

The advantage here is that it significantly improves liquidity. Instead of having (at least) three different markets (one each for BUSD USDT and USDC) you just have 1...

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