Binance Says Tether (USDT) Belongs To Clients Who Are Customers, Not To The Exchange

Binance, one of the largest cryptocurrency exchanges in the market, has moved over $782 million in Tether (USDT) tokens. Due to this reason, many individuals were wondering what was Binance doing after moving such a large amount of USDT.

This comes after USDT and Bitfinex being investigated by regulators in New York being accused of using Tether’s funds to cover $850 million in losses.

Binance Explains Why It Moved $782 Million In USDT

April 26 was a bad day for the virtual currency market. Most of the cryptocurrencies fell sharply due to the aforementioned issue with Thether and Bitfinex.

Bittrex has been rejected its BitLicense application in the New York State and regulators are also investigating why it used $700 million of USDT reserves to cover up to $850 million in losses. Bitcoin, for example, was traded close to $5,275 after reaching $5,600 a few days ago.

At the same time, several exchanges and wallets started to move USDT and other coins to different exchanges. Indeed, Binance has been one of these exchanges moving a large number of funds. The twitter user @nondualrandy showed an image in which it is possible to see this USDT transfer made by Binance.

The CEO and founder of this platform, Changpeng Zhao, said that these are funds that belong to clients rather than to the exchange.

He went on explaining that Binance doesn’t own the USDT that is moving, users own the funds on the Binance platform, for example, in cryptocurrency wallets. The exchange only makes sure that when people want to withdraw them, they can do it.

Binance is one of the largest exchanges in the cryptocurrency market. At the time of writing, CoinMarketCap reported that Binance is the 6th largest cryptocurrency exchange according to its trading volume. In the last 24 hours, it handled $806 million in trading volume.

Furthermore, during the last hours, ETH withdrawals from Bitfinex increased by over 2200% after the issues that affected the platform and the Tether stablecoin. Although Tether remains under its peg with the USD 1:1, it recovered from the larger drop experienced yesterday. Each USDT can be purchased for $0.9929.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide