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Binance Sees An Outflow Of More Than $1 Billion After CEO Stepped Down
Binance saw an outflow of more than $1 billion within 24 hours. However, this does not include Bitcoin. This happened after CEO Changpeng Zhao stepped down from his role and pleaded guilty. The charge against the CEO and others was to violate the Bank Secrecy Act.
As per reports, the Binance officials willfully violated US economic sanctions by failing to implement an effective money-laundering program. In a deal with the Department of Justice, the CEO pleaded guilty and stepped down from his role.
On the other hand, the company?s liquidity has dropped 25% over the same time frame. This happened as the market makers were pulling back their positions. As a result, Binance faced significant outflows. Previously, when the exchange and its founder faced charges from the SEC for violating 13 security rules, there were substantial outflows, too.
According to CNBC.com,
?The exchange?s native token, BNB, is down more than 8% in the last 24 hours. Binance holds around $2.8 billion worth of BNB tokens, according to Nansen. And in March, after Binance phased out zero-fee trading of crypto asset pairs, including bitcoin, a key incentive for customers, the exchange began to see its share of all spot trading drop.?
However, despite these outflows, It still remains the largest crypto exchange in the world. Every year, it processes trading volumes worth billions in value. As per reports, assets worth more than $65 billion remain on the platform. This makes Binance capable of withstanding the sudden loss of many investors.
Due to its violations, the company agreed to pay $4.3 billion in fines to the US Government. This ends an investigation that has been going on for a year in the crypto exchange.
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