Binance, the world’s largest cryptocurrency exchange, said it would temporarily halt all transfers of US dollars starting Wednesday.
Our users will only be impacted a small amount and we are doing everything we can to get the service back up and running as soon as possible. All other methods of buying and selling crypto remain unaffected.
Binance’s CEO Changpeng Zhao, widely known as CZ, said on Twitter that the team is working on quickly resolving an issue with US dollar trades that only 0.01% of active users engage in.
Binance.US, which operates separately, was not affected by the suspension, and deposits and withdrawals in dollars are still functioning.
Crypto companies are currently experiencing a difficult time, especially centralized exchanges like Binance. In November, Binance briefly considered a bailout of its rival FTX. FTX was in the midst of a liquidity crisis and ultimately filed for bankruptcy. This event is now the center of a massive federal fraud investigation.
FTX’s collapse sent shockwaves throughout the digital asset ecosystem, sparking panic among investors and forcing other firms into liquidity crises of their own. Several, including Genesis, have since filed for bankruptcy.