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Musk Criticises Binance Over Dogecoin Withdrawals

Binance responded saying it is rebuilding its dogecoin wallet entirely, resulting in a delay in withdrawals that may continue another week


Dogecoin
A representation of the dogecoin cryptocurrency. Photo illustration: Reuters

 

Tesla chief Elon Musk on Tuesday criticised Binance boss Changpeng Zhao on Twitter after the cryptocurrency exchange limited withdrawals of meme-based digital currency dogecoin.

The crypto market has seen major fluctuations this year, often in response to Musk’s tweets. His comments on dogecoin have fueled a dizzying rally in its value this year.

“Hey @cz_binance, what’s going on with your doge customers? Sounds shady,” Musk tweeted on Tuesday.

Binance responded saying it is rebuilding its dogecoin wallet entirely, resulting in a delay in withdrawals that may continue for another week.

One of the largest cryptocurrency exchanges by trading volumes, Binance has come under increasing scrutiny from regulators.

“For years, Binance has remained a top cryptocurrency exchange attracting diverse users globally,” crypto exchange data provider Finbold said in a report this week.

“However, recently the exchange has faced regulatory woes but has managed to retain a high number of visitors.”

Highest Web Traffic

Finbold said Binance recorded the highest web traffic among digital currency exchanges in October at 171 million, up 12% on September.

Coinbase emerged second, adding 31% more visitors in October to 91 million. PancakeSwap ranks third with 25 million visitors.

Cryptocurrencies have drawn the ire of regulators worldwide and yet managed to trade at record highs as investors rush to profit from wild swings in prices.

Global regulators worry the rise in privately operated currencies could undermine their control of the financial and monetary systems, increase systemic risks, promote financial crime and hurt investors.

Zhao told the Financial Times that Binance is in talks with sovereign wealth funds about them taking a stake in the world’s largest cryptocurrency exchange, as it seeks to buttress relationships with governments and offset aggressive regulators.

 

  • Reuters with additional editing by George Russell

 


 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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