Binance, the world’s largest crypto-currency exchange, has been experiencing large outflows of funds during the past seven days, which could become deleterious for the world’s speculative financial bubble. The Wall Street Journal reported March 28, in an article, “Binance Sees $2 Billion in Outflows as Troubles Compound": “As of Monday evening [March 27], Binance had experienced net outflows of $2.1 billion on the Ethereum blockchain over seven days, according to crypto data provider Nansen.”
This process may have been accelerated by the suit filed by the U.S. Commodity Futures Trading Commission (CFTC) on March 27, alleging that Binance operated illegally in the United States, having evaded registration requirements, and violated rules designed to prevent illicit financial activity. It is not fully clear why the CFTC brought the suit. Binance is headquartered in Vilnius, Lithuania, while its founder, Changpeng Zhao, operates from Singapore.
Binance’s global trading platform, by far the world’s leading crypto-currency exchange, traded $65 billion of crypto per day in 2022, or a trading turnover of more than $24 trillion per year. The Journal reported, “Some investors have pulled back from Binance, fearing the type of bank runs that felled crypto exchange FTX and other lending platforms last year.” Crypto is a malignant speculative bubble.
The Western world financial-monetary system is in meltdown: In one week, Silicon Valley Bank, Signature Bank and Credit Suisse failed; in another week, the capstone of the crypto system, Binance experiences a fund outflow; another time, derivatives contracts are failing. Each misguided step taken to preserve the cancerous system, such as raising or lowering interest rates, intensifies the problem. There is no solution within the system. However, a LaRouche solution exists.
