In a surprising turn of events, Binance US, the American arm of the world's leading cryptocurrency exchange, has notified its users that their crypto holdings are no longer FDIC-insured. An email sent out to users revealed that the exchange had modified its terms of service, ceasing FDIC insurance on the funds.
According to the post, Binance US made this decision following guidance from the Federal Deposit Insurance Corporation (FDIC).
Alex DovbnyaThis move implies a significant change for users; Binance US has halted USD withdrawals, restricting users to only withdraw funds in stablecoins or other digital assets. This abrupt shift in policy has sparked widespread concern among crypto enthusiasts.
In a vocal response to this development, the renowned creator of Dogecoin (DOGE), Billy Markus, known as Shibetoshi Nakamoto, took to social media with a tweet saying, "thar she blows." While the phrase might seem unusual, it is a metaphorical way of saying "target in sight," which harkens back to the American maritime history of whaling.
Not your keys, not your money
As users grapple with this new development, the industry watches closely, pondering the potential ramifications for both Binance US and the broader crypto market. The halt on USD withdrawals has raised pertinent questions about the safety and reliability of crypto exchanges, prompting investors to reevaluate their trust in such platforms.
Yuri MolchanOnly time will reveal the long-term effects of this decision, as the crypto community navigates the turbulent waters of financial uncertainty.
Yuri Molchan
Vladislav Sopov
Dan Burgin
Alex Dovbnya