Binance halts withdrawals of USDC, Justin Sun deposited $100 mn into Binance

Image Credits: Unsplash

TRON founder Justin Sun recently deposited $100 million into Binance. 1 hour after the deposit, Binance temporarily paused USDC withdrawals.

December 13, 8:21 Am (UTC) Binance, the world’s number one crypto exchange, said in the early morning on Tuesday it had “temporarily paused” withdrawals of the major stablecoin USDC.

“On USDC, we have seen an increase in withdrawals,” Binance’s CEO Changpeng Zhao tweeted.

“However, the channel to swap from PAX/BUSD to USDC requires going through a bank in NY in USD.”

CZ Binance said that you need to use real dollars at a bank in New York to trade USDC Coin for two other crypto tokens, Paxos Standard and Binance USD. “The banks are not open for another few hours. We expect the situation will be restored when the banks open.”

“These are 1:1 conversions, no margin or leverage involved. We will also try to establish more fluid swap channels in the future.” Zhao added.

“feel free to withdraw any other stablecoin, BUSD, USDT, etc.” in last he added

So Why did Tron Founder Justin Sun Deposit USD then Withdrawal again after 3 hours

Onchain Analysis of Justin Sun Transaction

Dec-13-2022 07:39:11 AM +UTC Before Zhao Tweet Justin Sun withdrew $100 million $USDC from Circle and transferred to Binance.

Source: Etherscan

After the transaction was made CEO of the World’s number-one Exchange repost Justin Sun’s tweet and said “This is part of deploying BUSD on TRON, I think. Cross-chain swaps. Not sure of the details. Not directly handling it myself.”

11:10:23 AM +UTC Justin Sun withdrawal ~$100 million $BUSD from Binance only 3 hours after depositing. Justin 

Source: Etherscan

Tron Founder Justin Sun is like to give liquidity of USDC for Binance that’s why he swapped BUSD from USDC stablecoin, This comes just three hours after he deposited $100 million USDC to the same exchange. could be to show support during all the FUD, although if history repeats, he would send it to Paxos to redeem for fiat.

The Binance FUD becomes stronger that’s why investors moved money from the world’s biggest crypto exchange.

As per Reuters Article, Binance said in September it would automatically convert user balances and new deposits of USD Coin and other stablecoins Pax Dollar and True USD into its own stablecoin, Binance USD.