Black Monday for Binance and Cryptos – This Monday, June 13, 2022 is likely to remain a sad memory for crypto-investors. Just over a month after the cataclysm caused by the fall of the stablecoin TerraUSD (UST) of Terra (LUNA), the crypto market fall strongly again. To crown the harshness of this day, we learn that Binance suspends its withdrawals from bitcoins (BTC) and, in addition, the Terra/UST affair is worth lawsuits to the platform.
At the worst possible moment, Binance halts BTC withdrawals
This June 13, 2022 is not over yet, but the black swans follow one another at an impressive speed. Already this Sunday, June 12, the prices of bitcoin broke their stagnation channel (tidy) first dropping below $28,000. This morning, these are the serious difficulties of Celsius Network which created panic in the crypto market. The platform of lending centralized has indeed announced suspend any withdrawal of crypto-assets.
And as if all this were not enough to create enough FUD (fear, uncertainty and doubt) in the market, there Binance tells us – shortly after 3 p.m. on this Black Monday – that bitcoin withdrawals are suspended on its platform.
A priori, only withdrawals on the Bitcoin mainnet are temporarily stopped. Withdrawals of tokenized/wrapped bitcoins on the BNB Chain (BEP20) and Ethereum (ERC20) would not be impacted.
“A batch of BTC transactions got stuck due to low transaction fees, which led to a delay in withdrawals on the BTC network. As a result, bitcoin network withdrawals are temporarily suspended on Binance. BTC withdrawals on the other networks (BEP20 and ERC20) remain open normally.
Our team is working on a solution to resume withdrawals as soon as possible. (…)”
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A class action lawsuit against the crypto-exchange because of its sales of UST
While this withdrawal block is hoped to be very short-lived, another issue may linger for Binance. Still on this apocalyptic June 13, we indeed learn that a complaint in class action was launched against the US branch from the Changpeng Zhao platform.
The reason ? The UST stablecoin sale through the crypto exchange. In this 72-page appeal, the plaintiffs thus accuse the American subsidiary of Binance of having illegally sold the TerraUSD, because they consider them to be securities (securities). But other crypto exchanges could also find themselves in the turmoil of the UST and Terra, if we are to believe one of the law firms in charge of the complaint (below, the firm Roche Freedman).
“If you purchased LUNA or UST either on Coinbase, Kraken, Binance or Gemini: please contact [email protected] My firm is coordinating an effort to help those who have lost funds following the recent collapse of Terra and its LUNA token. »
Although Binance refutes totally these accusations, these new cases will not help the crypto-stock exchange. Especially since just a few days ago, the Reuters media accused Changpeng Zhao’s platform to have allowed money laundering. Without, however, providing more than simple suspicion (therefore no obvious proof).
Update : within minutes of posting this article, Binance announced on its Twitter account that withdrawals of BTC to the Bitcoin mainnet are operational again. The interruption will therefore only last a few hours.
Binance has now reached a sufficient critical size to be able to return blow after blow in this kind of skirmish. To register on the exchange and form your own opinion, vs’is over here.