Binance US Reacts to Bitcoin Cash FUD, Assures Users Their Funds Are Safe
Binance’s U.S. platform has rejected rumors regarding its bitcoin cash (BCH) reserves, reassuring customers that their funds are safe. On Sunday, the exchange restored BCH withdrawals after a brief suspension attributed to a technical issue with the automated system managing deposit flows.
Binance US Restores BCH Withdrawals Amid More FUD
The American subsidiary of the world’s largest cryptocurrency exchange, Binance US, addressed what it described as FUD (fear, uncertainty, and doubt) about users’ bitcoin cash holdings. “Binance US maintains 1:1 reserves, which means for every BCH you hold on our platform, we maintain a BCH in reserve,” the company said.
In statement posted Tuesday on Twitter, the exchange explained a pause in BCH withdrawals last week citing a technical issue in its deposit sweeping system.
“Under normal conditions, our systems based on predetermined thresholds automatically sweep funds from our customers’ individual deposit wallets into our platform’s hot wallets and ultimately to our cold wallets where assets are securely stored. Going into this past weekend, however, the sweeps from our customers’ BCH deposit addresses were not happening automatically,” the platform detailed.
This led to a temporary halt of BCH withdrawals until Binance’s tech team implemented a fix to resume normal deposit, hot, and cold wallet flows. “BCH withdrawals on all networks have now been fully operational since late Sunday night,” the exchange said.
The company emphasized that “in an environment where FUD spreads like a virus, we want to reiterate that Binance US was established to serve U.S. consumers and structured to adhere to U.S. regulations” and stated:
Rest assured that your assets remain safe and secure, and no amount of FUD will ever change that.
has been dealing with increased regulatory pressure around the world, including probes and lawsuits in the United States where it was accused of breaking securities laws and diverting customer funds. As a result, the market share of its U.S. subsidiary declined significantly. Last week, Binance’s founder Changpeng Zhao also called recent news of executive departures at the exchange FUD.
Do you think Binance US will be able to restore its market positions in the United States? Share your thoughts on the subject in the comments section below.
https://news.bitcoin.com/binance-us-reacts-to-bitcoin-cash-fud-assures-users-their-funds-are-safe/
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