Binance Processed More Withdrawals During LUNA, FTX Crashes: CZ

In regards to the recent remarks on handling huge withdrawals, Binance CEO Changpeng Zhao (CZ) tweeted that his company had processed more withdrawals during LUNA and FTX crashes.

In detail, yesterday, Michael Gu, founder of crypto analysis platform Boxmining wrote on Twitter praising Binance, saying that the platform has been handling crypto withdrawals efficiently. The analyst specifically said that Binance handled 10 transactions within one hour.

To this remark, Zhao responded: “We saw some withdrawals today (net $1.14b ish). We have seen this before”.

Moreso, the CEO added that some days Binance has net withdrawals and net deposits and this is a usual business for them. Notably, he said: “I actually think it is a good idea to stress test withdrawals on each CEX on a rotating basis.”

Significantly, in today’s tweet, Zhao also added that yesterday’s $1.14 billion withdrawal was not the highest withdrawal they processed and not even top five.

Speaking about the stress test, Zhao pointed out that despite running a test costs some network fees, it is good to keep the industry healthy and resilient.

Adding on, blockchain insight provider Nansen reported that there is a spike in withdrawals from Binance in the past day with a $1.6 billion netflow. The 7-day netflow reached $1.9 billion which is less than the $2.3 billion weekly netflow Binance processed during the FTX fallout. However, the coins withdrawn include ETH and ERC20.