Memo: Changpeng Zhao tells Binance staff to expect a “bumpy” several months but the exchange “will survive any crypto winter”, following massive withdrawals

Binance Holdings Ltd. Chief Executive Officer Changpeng Zhao warned his colleagues to expect tough months ahead …

Bloomberg 2022-12-14

Context & Ripple Effects

Binance had initially characterized outflows as a slight increase in withdrawals and said operations were normal. That reassurance followed Zhao’s warning that FTX’s near-collapse had severely shaken confidence across crypto markets.

The internal memo marks a sharper acknowledgment that the confidence shock was becoming an operational test for Binance, whose leadership was already navigating scrutiny over its structure in the US and UK.

First-order effects

Binance staff must operate through sustained customer withdrawals while Zhao asks them to prepare for difficult months, making liquidity management and customer confidence immediate priorities.
Customers receive a direct assurance from Zhao that Binance expects to withstand a prolonged downturn, but the need for that assurance underscores the pressure created by the outflows.

Second-order effects

The shift from describing withdrawals as slight to preparing staff for a bumpy period raises the bar for Binance’s public reassurances as users assess whether to keep assets on the exchange.
Regulatory scrutiny of Binance’s efforts to separate its US-facing operations gains added significance because a confidence-driven run tests both the exchange’s operations and the credibility of its governance.

Third-order effects

If repeated market shocks keep turning into withdrawal tests, centralized crypto exchanges will compete increasingly on demonstrable resilience and governance rather than trading access alone.
The later focus on a possible Zhao successor suggests that prolonged regulatory and confidence pressure can turn founder-led exchange management into a succession and institutional-control question.

The trend: Crypto’s post-FTX confidence crisis is pushing major exchanges to treat liquidity, governance, and leadership continuity as linked resilience tests.

Discussion

@cz_binance @cz_binance on x
Things seem to have stabilized. Yesterday was not the highest withdrawals we processed, not even top 5. We processed more during LUNA or FTX crashes. Now deposits are coming back in. 🤷‍♂️💪 https://twitter.com/...
@cz_binance @cz_binance on x
FUD brought “stress test”, which in turn helps to build the credibility for exchanges that passes the test. If you want to hold your own coins, feel free to use @TrustWallet. Please keep your private keys safe. Otherwise, we are here @binance. 🙏 https://twitter.com/...
@cz_binance @cz_binance on x
@cryptomanran What?! Not the right take. I talked about sensational headlines earlier in the same AMA... 🤷‍♂️
@cryptomanran Ran Neuner on x
🚨TODAY COULD BE BRUTAL FOR BTC!!🚨 I spoke to CZ and he responded to all the FUD surrounding the Binance mass withdrawals - here is what we know... Today could be a BRUTAL day for BTC and i'll tell you why in 90min!! LIVE at 9:15am EST: https://www.youtube.com/... https://twitter.…
@cryptotea_ @cryptotea_ on x
Funds are safu https://twitter.com/... https://twitter.com/...
@binance @binance on x
#Binance Card in its winter element. https://twitter.com/...
@crypto_crib_ @crypto_crib_ on x
Binance CEO, CZ warns that the ‘crypto winter’ isn't over. The good news is that spring always follows, no matter how long the winter is.
@spideycyp_155 @spideycyp_155 on x
Haters: Omg omg!! #binance saw over 6 bn in withdrawals yesterday!! But these fudders did not tell that it got more deposits (6.56B) than withdrawals. The overall volume 12.6B $!! Many exchanges cannot even handle 100 M volume!! @cz_binance we support #Binance unconditionally!! h…
@cz_binance @cz_binance on x
We saw some withdrawals today (net $1.14b ish). We have seen this before. Some days we have net withdrawals; some days we have net deposits. Business as usual for us. I actually think it is a good idea to “stress test withdrawals” on each CEX on a rotating basis. 💪 1/2 https://tw…
@cz_binance @cz_binance on x
On USDC, we have seen an increase in withdrawals. However, the channel to swap from PAX/BUSD to USDC requires going through a bank in NY in USD. The banks are not open for another few hours. We expect the situation will be restored when the banks open. 1/2
@binance @binance on x
$USDC withdrawals are back online. Thank you for your patience.
@justinsuntron H.E. Justin Sun on x
I just deposited 100 million USD into @binance. 我刚刚.币安充值1亿.元。 https://etherscan.io/...
@dylanleclair_ Dylan LeClair on x
Largest 24h flow of $BTC out of Binance ever: -39,637 BTC https://t.co/nraXyco6Ai
@jimcramer Jim Cramer on x
Do you feel as reassured by Binance as i do?
@nansen_ai @nansen_ai on x
There's a spike in withdrawals from Binance in the last 24H with -$1.6B* netflow Its 7-day netflow is now at -$1.9B, currently this is less than the -$2.3B weekly netflow Binance has processed in the wake of FTX collapse *ETH & ERC20 tokens only https://twitter.com/...
@wublockchain Wu Blockchain on x
According to lookonchain, Justin Sun(0x9f84) withdrew 34m BUSD and 15.4m USDT from Binance 9 hours ago, and transferred them to Paxos and Circle for suspected cash out. Justin Sun responded that the recent allocation of funds is just normal business cooperation.
@peckshieldalert @peckshieldalert on x
#PeckShieldAlert ~100M $BUSD has been withdrawn from Binance to 0x9f84 (JustinSun?) https://etherscan.io/... https://twitter.com/...
@lookonchain @lookonchain on x
Justin Sun(0x9f84) withdrew 100M $BUSD again from #Binance ~15 mins ago. https://etherscan.io/... https://twitter.com/... https://twitter.com/...
@cz_binance @cz_binance on x
This is part of deploying BUSD on TRON, I think. Cross-chain swaps. Not sure of the details. Not directly handling it myself. https://twitter.com/...
@cz_binance @cz_binance on x
These are 1:1 conversions, no margin or leverage involved. We will also try to establish more fluid swap channels in the future. In the meantime, feel free to withdraw any other stable coin, BUSD, USDT, etc. 🙏2/2
@cz_binance @cz_binance on x
It costs some network fees to run these “tests”. But keeps the industry healthy. Exchange business is simple. 👇 2/2 https://twitter.com/...
@cz_binance @cz_binance on x
FUD helps us grow, even though they are thoroughly annoying. You can FUD about someone without explicitly mentioning their name, which spreads awareness. It also helps unite their supporters because it forms a common defense alliance. Short thread. 1/4 https://twitter.com/...
@jp_koning John Paul Koning on x
- Binance introduced 1:1 stablecoin conversions last fall, effectively pegging the price of BUSD and USDC - A peg requires a supply of both stablecoins. Binance ran out of USDC - Instead of letting USDC's price float, Binance halted USDC withdrawals as it waits for new supply htt…
@arkhamintel @arkhamintel on x
Wondering who was depositing over $1B $USDC into Binance last night? We weren't. There have been no withdrawals of this size since these deposits were made. This means that amidst the volume of withdrawals, there is plenty of capital still willing to stay on @binance. https://twi…
@tree_of_alpha @tree_of_alpha on x
Sorry @cz_binance but your exchange is gone and we're going to zero. The cramer curse has spoken. https://twitter.com/...
@benmenontweet @benmenontweet on x
Just some data you can only get from @nansen_ai Stablecoin exchange balances pass 7Ds https://twitter.com/...
@bitfinexed @bitfinexed on x
Binance bank run continues. I'm sure it's perfectly safe leaving your tokens on an exchange that everyone knows is under criminal investigation for money laundering, criminal sanctions evasion, and an assortment of other charges. Ignore FUD! Believe Cult Leader CZ! https://twitte…
@mikemcdonald89 Mike McDonald on x
Very happy seeing this sentiment from CZ. Of course still best to withdraw though https://twitter.com/...
@brian_armstrong Brian Armstrong on x
Lots of fear out there in the markets. It's important people remember how different Coinbase is in moments like this: 🧵

Chronicles