Binance Withdrawals in U.S. Disrupted Amid Legal Battles

Binance acknowledged disruptions to its withdrawal process amid a potentially fatal legal battle with the CFTC.

Binance user in hell of loading screens after unable to withdraw his funds.
  • Binance users in the U.S. are experiencing difficulties withdrawing funds to banks.
  • While Binance claims it’s due to banking disruptions, users and critics are skeptical.
  • The issue arose after Binance found itself in a legal dispute with the CFTC. 

Binance, one of the largest cryptocurrency exchanges in the world, is experiencing disruptions in withdrawals to banks in the U.S.

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According to a Wednesday Twitter post from Binance, the exchange paused deposits and withdrawals “for a small subset of users.”

Binance cited “recent banking developments” for the move, pausing withdrawals “out of an abundance of caution.” The exchange added that it expects to restore withdrawals for all users soon.

Binance Users Went Anger, Withdraw En Masse

Binance users were generally unhappy with that explanation. Many demanded their money immediately and vented their anger at Binance’s social media. Others advised Binance users to transfer their crypto to a different exchange and withdraw it from there. 

Issues with off-ramping came after Binance saw a significant surge in the outflow of capital. On Monday, the exchange recorded $2 billion in outflows over seven days. The withdrawal spike comes after the exchange found itself in legal trouble with U.S. authorities. 

The exchange faces a potentially fatal lawsuit from the U.S. Commodity Futures Trading Commission (CFTC). The lawsuit alleges that Binance allowed U.S. residents to trade derivatives without registering with the agency.

On the Flipside

  • Binance’s troubles are mounting. On Wednesday, FT reported that Binance hid its ties to China for years after the exchange left the country. 
  • According to Binance’s CEO, Sam Bankman-Fried of FTX tried to discredit Binance with US regulators by pointing to its supposed Chinese ties. 

Why You Should Care

The situation with Binance withdrawals highlights the potential risks of dealing with centralized crypto exchanges. Investors should always be mindful of who they give custody over their funds. 

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Read more about Binance’s potentially fatal CFTC lawsuit:
Binance Lawsuit Explained: Why CFTC Involvement Is a Big Deal

Read about the ongoing developments in FTX:
FTX Bankruptcy: OKX, Okcoin Will Return $165M in Frozen Assets

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.