Over the past few days media created a lot of noise around alleged problems surrounding world’s largest cryptocurrency exchange Binance, so that many users rushed to send away their funds. This is not the first time Binance is being targeted this way, and the crypto exchange executives know how to act. It’s more interesting to know that Binance didn’t happen to get substantially exposed to FTX collapse, and, hence, Binance involuntarily strengthened its position on the crypto exchange market. Recently the New York Times published an article entitled “In FTX Collapse, Binance Sees a Chance to Become the New Face of Crypto”. That article may have poured even more oil into the furnace.

Yesterday Binance released a report by auditing firm Mazars last week claiming that its Bitcoin (BTC) reserves are overcollateralized. "At the time of assessment, Mazars observed Binance controlled in-scope assets in excess of 100% of their total platform liabilities," Mazars said in an announcement. The exact percentage was 101%.

Industry experts and recent reports flayed the document for its narrow scope, and on Monday, Reuters reported that U.S. prosecutors are mulling criminal charges for possible money laundering against Binance and its executives, including CEO Changpeng Zhao.

Jump Trading appears to be the largest entity withdrawing from Binance, Nansen analyst Andrew Thurman wrote in a tweet. Net withdrawals from the exchange by crypto wallets associated with Jump reached $146 million of digital assets through the past seven days, data compiled by Nansen shows.

Jump’s net withdrawals include $102 million in Binance USD (BUSD), the exchange’s stablecoin issued by Paxos; $14 million of Tether’s USDT; and $10 million of Ethereum (ETH). We hope that as it was the case in all previous episodes, Binance executives would demonstrate their loyalty and their distinct strive to cooperate with financial authorities, so their efforts would lead to some kind of positively impactful joint statement soon. So far, current events don’t remind us of anything like self-reinforcing closures, let alone collapsing processes.