Binance, OKX, BitMex and ByBit suspend Solana stablecoins

abdelaziz Fathi

At least five crypto exchanges wrote to customers today that all deposits and withdrawals for Tether’s USDT and Circle’s USDC have been suspended on the Solana network.


As FTX fiasco continues to roil the broader space, major crypto platforms including Binance, OKX, BitMex and ByBit said the pause is effective immediately. The two stablecoins exist on many other blockchain networks, and the suspension only applies to users looking to move either asset on Solana. Binance’s email continued to say that stablecoin deposits in other ecosystems, including Ethereum and Cronos, would not be impacted.

In response, USDC issuer Circle assured users that its Solana-based stablecoin is operating as usual and there are no issues with issuing or redeeming the stablecoin. “USDC is always redeemable 1 for 1 for US dollars. Any amount. Any time. For Free. Always,” the firm added.

World’s largest stablecoin issuer, Tether also distanced itself from of the liquidity crisis that engulfed FTX and Alameda Research, saying they have no exposure to Samuel Bankman-Fried’s crypto empire. Tether’s CTO Paolo Ardoino posted a thread to explain the relationship between FTX and its USDT token to clear any fears and uncertainty among market players. He explained that Alameda has issued and redeemed a lot of USDT in the past, but they have no credit exposure that has matured with the struggling crypto trading firm.

Although these exchanges did not explain why they chose to suspend Solana transfers, the move comes amid one of the more chaotic weeks in crypto history. The drama reached an apex after Sam Bankman-Fried’s crypto empire filed for bankruptcy protection as it grapples with a liquidly crunch and customers’ huge withdrawals triggered by a run-on-the-bank-like crisis

Besides FTX’s woes, the bankrupt exchange and its founder also has deep ties with the Solana ecosystem. Bankman-Fried’s crypto trading arm, Alameda Research, invested $314 million in Solana’s development team.

Thus, alongside FTX’s native token, the price of SOL has also lost nearly two thirds of its marketcap as investors continue to scramble as a result of FTX’s collapse. At this point, the recent suspensions could be seen merely as precaution against the overexposure of FTX to Solana’s network, waiting for the situation to stabilize at least.

Solana is an open-source blockchain that is positioned as a competitor to Ethereum. It supports smart contracts, including non-fungible tokens (NFTs) and a variety of decentralized applications (dApps).

A large portion of SOL token, which provides network security through staking as well as a means of transferring value, is controlled by SBF’s Alameda Research and FTX.

Read this next

Digital Assets

Global clamp down on crypto tax evasion to go live in 2027

“As jurisdictions that play host to active crypto markets, we therefore intend to work towards swiftly transposing the CARF into domestic law and activating exchange agreements in time for exchanges to commence by 2027.”

Digital Assets

Ripple and Archax team up for tokenization with XRPL

“There is clear real-world utility in use cases like RWA tokenization for the operational efficiency, access to liquid markets and transparency inherent to crypto, and Archax has already tokenized assets such as equities, debt instruments and money market funds. Financial institutions are now understanding this and we are excited to play our part in helping them to embrace the technology by bringing their assets onto the XRPL.”


Acuity Trading at iFX EXPO LATAM: Andrew Lane on the rise of AI and prop trading

At iFX EXPO LATAM 2024, Acuity Trading’s Andrew Lane discussed the successful rollout of their Research Terminal, the impact of AI on the trading industry, competition from AI-powered solutions, emerging market trends in Latin America, and the rise of prop trading, while addressing regulatory challenges and innovations.


Top Crypto Highlights for Q2 2024: BlockDAG’s Astonishing 1120% Growth Compared to Solana’s Surge and Toncoin’s Market Triumph

Explore the latest highlights in cryptocurrency: Solana’s recovery, Toncoin’s record levels, and the rise of BlockDAG’s innovative technology.

Digital Assets

Ripple seeks $10 million penalty citing Terraform fine in SEC case

Ripple Labs wants to reduce the financial penalties proposed by the U.S. Securities and Exchange Commission (SEC) by leveraging recent fines imposed on Terraform Labs.

Digital Assets

Swiss regulator shuts down CoinShares’ partially-owned FlowBank

Switzerland’s financial regulator, FINMA, has closed FlowBank SA and placed it into bankruptcy due to severe breaches of capital requirements and other supervisory laws. This follows a series of enforcement actions against the bank that began in October 2021.


Presale Power Players: 5 Crypto Presales Primed for Success in 2024 According to Experts

Unlock the potential of the best presale cryptos available now. See why experts recommend BlockDAG, Bitbot, eTukTuk, 99Bitcoins Token, and ButtChain.

Executive Moves

Paxos axes 65 jobs, cuts headcount to below 300

Stablecoin issuer Paxos has laid off 65 employees, equating to 20% of its staff, despite maintaining a robust financial standing.

Institutional FX

US sanctions trigger major shifts in Russian FX market, says Sergey Romanchuk

The U.S. sanctions imposed on June 12 against the Moscow Exchange and its clearing entity, the National Clearing Center (NCC), are set to cause massive disruptions in the Russian currency market, according to FX industry veteran Sergey Romanchuk.