Binance Records Stable Fund Status Despite $4.3B Settlement, CEO Resignation
Summary:
Despite facing civil and criminal charges leading to a $4.3 billion settlement, Binance did not experience a "mass exodus of funds," according to reports from blockchain analytics firm Nansen. The crypto exchange noticed a $956 million net outflow on Ethereum within 24 hours post-settlement. However, Binance's overall holdings increased, surpassing $65 billion. While Tether holdings dropped significantly, holdings of other cryptos like XRP and TrueUSD remained stable. Amid the regulatory turmoil, Richard Teng steps in as CEO, replacing Changpeng “CZ” Zhao, as the Binance continues to operate under heightened regulatory scrutiny.
In the aftermath of a settlement resolved between Binance and its CEO, multiple civil and criminal charges have been levied. However, as confirmed by the blockchain analytics entity Nansen, this development didn't trigger a significant funds withdrawal from the cryptocurrency exchange. Following the $4.3 billion settlement announcement by the Department of Justice in the United States on November 22, Binance experienced a net Ethereum outflow of $956 million. However, the platform's overall holdings surged surpassing $65 billion. Despite fund withdrawals remaining ongoing, Nansen emphasised that there was no widespread funds withdrawal. Binance has experienced more substantial outflows during historical events such as the SEC's litigation against Binance in June 2023 and the post-insolvency rumours in December 2022.
Within the last 24 hours, Tether (USDT) holdings on Binance saw the most significant decrease by approximately $246 million, according to the Nansen report. The holdings of certain cryptocurrencies like XRP and TrueUSD (TUSD), however, continued on a stable trajectory. In the backdrop of this turmoil, Binance reached a plea agreement enabling it to continue operations while under regulatory purview in the United States on November 21. As a part of this deal, Binance Global's Regional Markets Head, Richard Teng, replaces Changpeng “CZ” Zhao as CEO. On November 22, Richard Teng expressed confidence in Binance's robust fundamentals, despite the transition and legal settlements. Nevertheless, Binance remains embroiled in a lawsuit from the U.S. Securities and Exchange Commission.
Published At
11/22/2023 8:33:00 PM
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