Binance Finds Solution to Stop Investors Scared by FTX Crash From Leaving: Details

Yuri Molchan

Largest Crypto Trader Shows Institutions It’s Safer Than FTX

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As reported by bloombergBinance Finds A Way To Assuage Institutional Investor Concerns About Crypto Raised After Binance’s Ambitious Rival FTX Collapse Early November last year.

Going forward, Binance will allow investors to hold collateral for leveraged positions off-platform. Binance Custody helps here by storing assets in cold wallets.

Binance reminded investors that the cryptocurrencies used to back leveraged trades are safely stored there, as cold wallets are not connected to the internet. Once the transaction is completed, the coins will be unlocked and the customer will be able to access them again.

Launched last year, Binance Custody is registered in Lithuania.

Frightened and shocked investors, along with founder Sam Bankman-Fried and his trading firm Alameda Research (which pushed Binance into bankruptcy) after FTX went bust and went bankrupt, feared started frantically withdrawing cryptocurrencies from Binance and other cryptocurrency exchanges. To see their funds misused too. In particular, they stole billions of cryptocurrencies from Binance.

but, Exchange Director, CZ, calmly commented that this was the normal deal. He added that Binance saw more withdrawals when the LUNA token crashed.

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