- Binance, the world’s largest cryptocurrency exchange, has experienced a significant increase in withdrawals following the admission of guilt by its founder to charges in the United States.
- Withdrawals surged after Binance’s co-founder, Changpeng Zhao, admitted guilt and stepped down as the company’s CEO.
- Zhao accepted a $50 million fine as part of the agreement. After acknowledging guilt to a series of charges, Binance will pay a $4.3 billion fine.
Binance exchange started to see an increase in crypto outflows after the problems it experienced in the US: How much outflow is observed?
Withdrawals from Binance Exchange Increased in the Last 24 Hours
Binance, the world’s largest cryptocurrency exchange, has experienced a significant increase in withdrawals following the admission of guilt by its founder to charges in the United States. Data from DeFiLlama indicates that Binance’s withdrawals have surpassed $1 billion in the last 24 hours, with a 7-day net outflow of $703.1 million.
According to separate data compiled by Nansen, $605.9 million of Binance’s total outflows came through the Ethereum, BNB, Avalanche, Fantom, and Polygon networks. The withdrawals followed the admission of guilt by Binance’s co-founder Changpeng Zhao on Tuesday for violating the Bank Secrecy Act and stepping down as the CEO of the company. Binance has appointed Richard Teng as the new CEO.
As part of the agreement, Zhao accepted a $50 million fine. After acknowledging guilt to a series of charges, including violating the Bank Secrecy Act, conducting unlicensed money transmission transactions, and violating sanctions, Binance will pay a $4.3 billion fine.
Meanwhile, OKX achieved the largest daily inflow in the last 24 hours with a net inflow of $152 million, followed by Bybit with $50.9 million and Bitstamp with $30.5 million, according to data from DeFiLlama. Binance’s native token, BNB, traded at $234.3 with a 9.1% decrease in the last 24 hours, according to the data.
Why are the DOJ’s moves important?
Jason Atkins, the Head of Trading at Auros, said, “Developments like the penalties imposed by the DOJ on Binance create a second effect around market sensitivity, showing the approach of various regulatory bodies to historical violations.” Atkins added, “We expect this to accelerate projects, exchanges, founders, and companies’ direct exit from U.S. regulatory oversight. Compliance to minimize errors in AML and KYC requirements in the United States will now be non-negotiable.”
Despite a significant blow to its operations in the U.S., Binance has already been trying to chart a vision for its future. In a blog post released today, the company stated, “(Binance), when it started, did not have enough compliance controls for the rapidly evolving company, and it should have. Over the past two years, we have worked to restructure our organization and personnel and upgrade our systems.
