Binance Regains Market Share Following $4.3 Billion Settlement with US Department of Justice
Summary:
After settling a case with the US Department of Justice and paying a $4.3 billion fine, Binance, the cryptocurrency exchange, has started to regain its market share. Despite suffering significant blows to its spot market share throughout 2023, Binance reported a nearly 30% user growth compared to 2022. Prioritizing its users, Binance continues its journey, stepping into a fresh phase after the settlement.
After settling a case with the US Department of Justice and paying a $4.3 billion fine, Binance, the cryptocurrency exchange platform, has begun to regain its trading volume market share. Kaiko, a crypto research firm, highlighted that a 49% market share was reclaimed by Binance, just two months following their settlement with US regulatory bodies. This can be seen as a considerable recovery after the exchange faced multi-year lows during its legal turmoil.
Despite a promising start in 2023, Binance's spot market share took several significant hits. The share, which initially stood at 55.2% in January 2023, plunged to a mere 34.3% in September the same year, as per the records noted by crypto data firm, CCData. June 2023 saw Binance undergoing a substantial net outflow of $2.36 billion, as reported by Nansen, the analytics firm. DefiLlama, the data aggregator, disclosed an even larger amount of $3.35 billion leaving Binance's coffers. Changpeng Zhao, the former CEO of Binance, however, disputed these figures, suggesting that changes in assets under management (AUM) could have been inaccurately measured as outflows by these third-party analytics companies. Despite these setbacks, Binance reported a gain of about 40 million additional users in 2023 – a nearly 30% increase from 2022 – while experiencing growth in their core services.
In an official statement to Cointelegraph, a Binance representative said that the platform prioritizes its users while stepping into a fresh phase of its journey. They stated, “Binance has always emphasized the importance of placing users at the heart of every decision. As we continue our journey, this commitment mirrors in our users' continued trust in our platform."
In November, US officials confirmed a $4.3 billion settlement with Binance. In his press release, Attorney General Merrick Garland explained that this amount would cover the "civil regulatory enforcement actions" carried out by government departments, which include the Treasury and the Commodity Futures Trading Commission (CFTC).
Published At
1/30/2024 4:31:42 PM
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