Binance, a major cryptocurrency exchange, experienced a significant outflow of funds, with investors withdrawing about $950 million in just one day.
This happened right after Changpeng Zhao, the CEO, left his job. Most of the withdrawn funds were in cryptocurrencies like USDT, Bitcoin, Ether, and BNB.
BNB is linked to Binance but is not under its direct control. It was the most affected by Zhao’s departure.
Despite these large withdrawals, the situation at Binance soon stabilized. Over the next 12 hours, the amount of money Binance held actually went up.
It rose from $64.6 billion to $65.2 billion. This increase came from new deposits and the rising value of the assets.
Nansen, a company that tracks crypto data, noted that Binance has handled bigger withdrawals before.
It did so without running into cash problems. For example, big withdrawals happened in June 2023 after the SEC sued Binance.
There were also large withdrawals in December 2022 due to rumors about Binance’s financial health.
Hochan Chung from CryptoQuant shared his views with CoinDesk. He said that compared to Binance’s total reserves, the recent withdrawals were not very large.
He believes that Binance is not in danger of failing.
Investors started pulling out their money after Zhao announced a deal with the U.S. government.
This deal ended an investigation into Binance possibly breaking anti-money laundering laws. As part of the deal, Zhao had to resign as CEO.
Binance also agreed to stop its U.S. operations and pay a big fine of $4.3 billion.
Zhao talked about his decision on a social media platform. He admitted making mistakes and recognized that Binance has grown a lot.
He described his decision to step down as tough but necessary. Richard Teng, previously the head of global markets at Binance, took over as CEO.
Live Market IntelligenceCrypto — Live Market Board
Rio Times · Live Market Intelligence
Crypto — Live Market Board
-0.26%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| BTC | 63,384 | -0.26% | -47.24% | 63,552 | 64,346 | 63,305 | 22,774,743,040 |
| ETH | 1,886 | +0.26% | -58.90% | 1,881 | 1,920 | 1,879 | 7,916,475,392 |
| SOL | 75.89 | -0.40% | -60.44% | 76.20 | 76.99 | 75.39 | 1,473,821,056 |
| XRP | 1.01 | -1.15% | -69.07% | 1.02 | 1.02 | 1.01 | 1,144,044,416 |
| BNB | 609.60 | -1.12% | -26.81% | 616.50 | 619.30 | 609.23 | 1,266,706,432 |
| ADA | 0.18 | -1.98% | -78.22% | 0.19 | 0.19 | 0.18 | 238,085,632 |
| DOGE | 0.07 | -1.56% | -70.00% | 0.07 | 0.07 | 0.07 | 553,256,192 |
| AVAX | 6.38 | +1.04% | -74.11% | 6.32 | 6.42 | 6.21 | 248,470,560 |
| LINK | 8.77 | -0.06% | -62.73% | 8.77 | 8.87 | 8.68 | 317,054,880 |
| DOT | 0.78 | -0.75% | -81.11% | 0.79 | 0.80 | 0.78 | 43,490,492 |
| LTC | 45.08 | -0.85% | -65.45% | 45.47 | 45.59 | 44.98 | 143,727,712 |
| BCH | 213.85 | +0.10% | -65.44% | 213.64 | 215.69 | 212.54 | 137,956,688 |
| TRX | 0.34 | +0.28% | -4.73% | 0.33 | 0.34 | 0.33 | 436,576,064 |
| XLM | 0.16 | -1.33% | -64.46% | 0.16 | 0.16 | 0.16 | 89,559,864 |
| HBAR | 0.07 | -0.53% | -74.67% | 0.07 | 0.07 | 0.07 | 22,546,186 |
| NEAR | 1.65 | +2.42% | -40.55% | 1.62 | 1.68 | 1.61 | 187,591,264 |
| ATOM | 1.40 | -2.36% | -70.15% | 1.44 | 1.44 | 1.40 | 18,626,964 |
| AAVE | 89.06 | +0.93% | -72.33% | 88.24 | 90.20 | 88.19 | 129,099,704 |
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief