25 April, 2024



CryptoQuant Founder Disagrees With Concerns of Bank Run On Binance

03 Aug, 2023

07 Nov, 2023

  • CryptoQuant founder Ki Young Ju believes that there is no risk of a bank run on Binance. 
  • Ju’s comments came amid reports of the U.S. Justice Department filing fraud charges against Binance. 
  • Ki Young Ju highlighted the Bitcoin balance of users on Binance to make his case.

Ki Young Ju, the co-founder and chief executive of on-chain analytics platform CryptoQuant, recently stated there was no risk of a bank run on Binance. The CryptoQuant CEO’s comments came in response to the reports of the U.S. Department of Justice considering fraud charges against Binance.

According to a recent report by Semafor, the United States Justice Department was considering initiating a fraud lawsuit against Binance. However, people familiar with the matter revealed that federal prosecutors overseeing the case were worried about a potential bank run on the crypto exchange following their lawsuit.

Ju took to Twitter earlier today to highlight the user balances of the world’s largest crypto exchange:

Addressing the claims about a bank run on Binance, Ju stated that it wasn’t the first time he had heard such concerns. The data gathered from CryptoQuant showed that Binance held a whopping 566,362 BTC and over 4 million ETH in its exchange reserves.

The CryptoQuant CEO indicated that the risk regarding a potential bank run on Binance was not reflected in the crypto exchange’s reserved holdings. A bank run refers to a situation where users of an institution rush to withdraw their assets due to concerns surrounding the institution’s solvency. By publishing the rising BTC and ETH reserve holdings, Ju indicated that there was no visible risk of a bank run on Binance.

Semafor’s report also stated that the concerns about a bank run prompted federal prosecutors to explore other options, including fines and non-prosecution agreements in order to hold the crypto exchange accountable without compromising the safety of its users and investors.

BNB and Bitcoin witnessed a visible decline in their prices following the reports of the Justice Department’s potential fraud charges against Binance. BNB tanked as much as 3.4% to $237, while BTC sank nearly 2%.

Tags:

Share:


By using this site, you agree to the Privacy Policy and Terms of Use.