{"id":157239,"date":"2023-11-22T12:41:02","date_gmt":"2023-11-22T12:41:02","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=157239"},"modified":"2023-11-23T01:14:43","modified_gmt":"2023-11-23T01:14:43","slug":"binance-suffers-more-than-1-billion-in-outflows-following-czs-resignation","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/binance-suffers-more-than-1-billion-in-outflows-following-czs-resignation\/","title":{"rendered":"Binance Suffers More Than $1 billion in Outflows Following CZ’s Resignation"},"content":{"rendered":"

In the last 24 hours, Binance<\/a>, the world’s leading cryptocurrency exchange, has witnessed significant financial movement with over $1 billion in net fund outflows.<\/strong><\/p>\n

<\/p>\n

This event arose from the fact that the founder and CEO of Binance, Changpeng Zhao, had to face several criminal charges in the United States.<\/strong><\/p>\n

Data provided by DefiLlama<\/a> reveals that Binance’s capital outflows surpassed the $1 billion mark around 3:30 p.m. Hong Kong time last Wednesday. This outflow adds up to a considerable amount of $703.1 million over a 7-day trajectory.<\/strong><\/p>\n

These financial movements come after Zhao’s admission of guilt for violating the Bank Secrecy Law<\/strong>, followed by his resignation as CEO of the company.<\/strong><\/p>\n

Binance has appointed Richard Teng as its new CEO<\/h2>\n

As part of the settlement, Zhao has agreed to pay a fine of $50 million<\/strong>, while the company faces a penalty of $4.3 billion<\/strong> for crimes including money laundering, conspiracy to conduct unlicensed money transmission business, and sanctions violations.<\/p>\n

The market reaction has taken a slight hit with Binance’s native cryptocurrency, BNB, recording a 9.5% drop,<\/strong> trading at $233.2 according to data from CoinMarketCap<\/a>.<\/p>\n

Furthermore, other exchanges such as OKX, Bybit and Bitstamp, during the same period, have experienced net inflows,<\/strong> suggesting a transfer of funds from Binance to these alternative platforms, as expected in reaction to the news.<\/p>\n

Of the total outflows from Binance, a significant amount of $605.9 million was channeled through various networks,<\/strong> including Ethereum, the BNB<\/a> chain with a negative variation of 9.49%, Avalanche, Fantom and Polygon.<\/p>\n

Additionally, a substantial portion of these funds has been transferred to cold wallets and stablecoins.<\/strong> This move suggests a clear intention to safeguard digital assets outside of exchanges, aiming for greater security and stability<\/strong> in a volatile environment.<\/p>\n

\"Binance<\/p>\n

These strategies could be aligned with a vision for the future<\/strong>, particularly in the face of the eventual entry of ETFs<\/strong> into the crypto market.<\/p>\n

By keeping these assets off exchanges<\/strong> in more secure or stable forms of storage, investors could be strategically positioning themselves to take advantage of emerging opportunities<\/strong>, facilitating agile and timely moves should lucrative options present themselves, such as the imminent foray into ETFs. by Wall Street.<\/p>\n

This tactic highlights possible future movements within the crypto market,<\/strong> especially in the face of indications that the US market could face a recession in the short\/medium term<\/strong> and cryptoassets such as Bitcoin, Ethereum and others, function as a reserve of value<\/strong> for the portfolio of institutional investors in such a situation.<\/p>\n

Various media outlets have also highlighted particular political issues and the incessant regulatory pressure<\/strong> by the SEC on foreign companies operating in the United States.<\/p>\n

Jason Atkins, an executive at Auros, has noted that these events could accelerate the exit of projects,<\/strong> exchanges and firms from direct US regulatory scrutiny, making regulatory compliance a priority<\/strong> to avoid failures in anti-money laundering requirements. (AML) and customer verification (KYC).<\/p>\n","protected":false},"excerpt":{"rendered":"

In the last 24 hours, Binance, the world’s leading cryptocurrency exchange, has witnessed significant financial movement with over $1 billion in net fund outflows.<\/p>\n","protected":false},"author":33,"featured_media":157240,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102,84,74],"tags":[4601,5001],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/157239"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=157239"}],"version-history":[{"count":0,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/157239\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/157240"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=157239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=157239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=157239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}