Binance Experiences $1 Billion Outflow After CEO Changpeng Zhao’s Guilty Plea, Signaling a Major Shift in the Crypto Landscape
Crypto News – In a momentous development within the cryptocurrency landscape, Binance, the world’s leading cryptocurrency exchange, has experienced a substantial surge in outflows exceeding $1 billion in just 24 hours. This surge coincided with the resignation of Changpeng Zhao, the company’s CEO, who pleaded guilty to a range of securities law violations during a significant court hearing.
Zhao’s departure and the subsequent imposition of a hefty $4.3 billion fine on Binance have reverberated throughout the cryptocurrency industry, leading to a significant movement of funds away from the beleaguered exchange.
As news of Changpeng Zhao’s guilty plea and resignation broke, the cryptocurrency community responded swiftly. Concurrently, data from DefiLlama revealed a remarkable outflow from Binance, surpassing $1 billion in a 24-hour period, with a net outflow of $703.13 million over the past seven days.
These substantial withdrawals underscore the mounting concerns and uncertainties surrounding the exchange, triggered by legal challenges and changes in leadership. In essence, this sudden exodus followed the admission of guilt by Binance’s co-founder, Changpeng Zhao, for violating the Bank Secrecy Act, necessitating a reshuffling of leadership.
While Binance grapples with the repercussions of its founder’s plea agreement, other cryptocurrency exchanges are witnessing notable inflows. According to DefiLlama data, OKX emerged as the top gainer, receiving $152.02 million in net inflows within the past 24 hours, positioning itself as a beneficiary of Binance’s challenges. Additionally, Bybit and Kucoin recorded substantial daily inflows of $51.34 million and $31.58 million, respectively, indicating a potential shift in user trust and confidence within the cryptocurrency exchange landscape.
At the time of this report, the price of Binance Coin (BNB) has experienced a 9.30% decline, trading at $236.13 on November 22nd. In contrast, the trading volume of BNB surged by 59% in the last 24 hours, reaching $2.57 billion during the same period.
Regarding recent price fluctuations, BNB saw a 24-hour high of $269.92 and a low of $224.98.
Despite the significant outflow from Binance, it remains the top cryptocurrency exchange in terms of asset holdings. As of the time of this report, the exchange boasts $67.68 billion in assets, maintaining its position at the forefront of the cryptocurrency exchange ecosystem.
1 Comment