HomeNEWSControversy deepens as Binance suspends USDC withdrawal for ETH/BNB/TRX

Controversy deepens as Binance suspends USDC withdrawal for ETH/BNB/TRX

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The Fear, Unrest and Doubts (FUD) on Binance have attained a new height following the suspension of USDC withdrawal for ETH/BNB/TRX. In the early hours of today, Peckshield raised the alarm that Binance has suspended withdrawals for the aforementioned pairs.

Meanwhile, before the tweet by Peckshield, Binance’s CEO on his Twitter page said the cryptocurrency exchange has seen an increase in USDC withdrawals. CZ stressed the unavailability of swapping PAX/BUSD to USDC due to a bank issue. The cryptocurrency exchange said the process usually involves a bank in New York and the bank is closed down for some hours. Subsequently, Binance promised to establish more channels in the future that will facilitate a seamless swapping of the pairs.

Meanwhile, the tweet garned lots of mixed reactions by users of the cryptocurrency exchange on Twitter. A user Rory Shannon made mockery of the cryptocurrency exchange dependence on a Bank. The user aimed a dig to the general saying that cryptocurrency is the future of finance. Despite the criticism, a lot of users still show support for the cryptocurrency exchange.

Growing concern about Binance’s business operations

Before now, there are concerns over the business operations of Binance following the release of its Proof of Reserve. The cryptocurrency exchange’s move to illustrate that it’s transparent with its business activities has gone haywire.

Last month, Mazar reported that Binance’s PoR is overcollateralized, though the firm didn’t confirm or attest if it carried out an audit on the firm. However, the crypto exchange on its side emphasized that the PoR report came to life after an audit. The next phase of the Binance release of its PoR will come up soon, in preparation, the cryptocurrency exchange moves large funds from its wallet.

The move cast doubts over the credibility of the cryptocurrency exchange in its quest for transparency. Similarly, a recent report from Reuters regarding the U.S Department of Justice’s investigation on Binance has fueled the burning fire. Reuters said the crypto exchange is lobbying against the commencement of investigation into an alleged criminal case that surfaced in 2018.

Additionally, Reuters reported that Binance is under the watchful eyes of the DOJ due to it’s involvement in money laundering. Reuters in the report established that prosecutors are divided on the case whether there are enough evidence against Binance. The report prompted Binance to release a statement on its blog post to dislodge Reuters’ claims. Currently, there are growing concerns on if truly the exchange’s business operations are devoid of any illicit activities.

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