Binance suspended cryptocurrency withdrawals due to the collapse of FTX

The world’s largest cryptocurrency exchange Binance has suspended the withdrawal of digital currency USDC on customer accounts due to increasing fears of investors amid the bankruptcy of the exchange FTX.

“We have recorded an increase in withdrawal requests in recent days,” Binance founder Changpeng Zhao wrote on his Twitter page, due to which the decision was made to suspend such operations.

Investors have begun to withdraw funds, as the channel specifies, including after the U.S. Department of Justice began checking the Binance exchange for compliance with U.S. anti-money laundering laws.

The U.S. attorney for the Southern District of New York earlier said FTX founder and former CEO Sam Bankman-Fried was detained in the Bahamas at the request of the U.S. government. Investors last month withdrew a record 91,000 bitcoins totaling about $1.5 billion from FTX, the largest outflow in its history.