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Binance suspends withdrawals of stablecoin USDC

Bryan Wu
Bryan Wu12/13/2022 07:30 PM GMT+08  • 1 min read
Binance suspends withdrawals of stablecoin USDC
Binance chief executive Changpeng Zhao. Photo: Bloomberg
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Binance, the world's biggest crypto exchange, says it has suspended the withdrawal of major stablecoin USDC.

On Dec 13, Binance's chief executive Changpeng Zhao tweeted: "On USDC, we have seen an increase in withdrawals.”

He says that the exchange of USDC with two other crypto tokens, Paxos Standard (PAX) and Binance USD (BUSD), requires the use of conventional US dollars (USD) at a bank in New York. "The banks are not open for another few hours. We expect the situation will be restored when the banks open,” he explains.

Zhao says the swaps are "1:1 conversions”, with no margin or leverage involved. “We will also try to establish more fluid swap channels in the future," he adds.

Token swaps, through which digital token holders exchange their crypto coins, are typically conducted over different blockchains. In September, Binance said it would automatically convert user balances and new deposits of USDC and other stablecoins PAX and True USD into its own stablecoin, BUSD.

News of the US Department of Justice’s (DOJ) investigation into Binance for possible money laundering and criminal sanctions violations broke on Dec 12.

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