On 12th December, Binance had to face the total withdrawals of 40 thousand BTC within a day
The total BUSD reserves of Binance are resting somewhere around $40 billion after being reduced by $13 billion
Proof-of-reserves are reported to be reduced by a whopping $3.5 billion.
According to the on-chain data, Binance’s PoR assets have fallen steeply after a day full of panic selling. According to the data by Glassnode, a total sum of $3.45 billion worth of BUSD along with $500 million worth of BTC has been taken out from the Binance reserves.
This indicates the pressure on the exchange for dealing with the massive withdrawals happening on the platform for a few days. On 12th December, Binance had to face the total withdrawals of 40 thousand BTC within a day when questions started popping up about the credibility of the proof-of-reserves of the centralized exchange.
Leading crypto voices including Jesse Powell, founder of Kraken raised questions when Mazars, the auditor for the proof-of-reserves of Binance also refused to share the details of the mechanism used for validating all the holding of the exchange. Auditing was done on the conditions of Binance and specific parts of the Binance accounts were made out of bounds for Mazars.
The questions were valid enough to create FUD in the market as a consequence of which the users of Binance started withdrawing their funds from the exchange on a large scale.
The total BUSD reserves of Binance are resting somewhere around $40 billion after being reduced by $13 billion. On the other hand, the present proof-of-reserve holdings of Binance are around 555,261 BTC while the total user funds are 656,361 BTC. On-chain data signifies the gap in Binance’s present PoR, this is one of the reasons that's why the Binance withdrawals are continued.
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Also, Read - Binance Is Facing Massive BTC Withdrawals | $1.14 Billion Out of the Exchange Within 24 Hours
