Blockchain analysis firm Nansen reported that following a settlement of civil and criminal charges against Binance and CEO Changpeng “CZ” Zhaomoney outflows from the crypto exchange did not result in a “mass exodus of funds.”
In an X post on November 22, Nansen saying approximately 24 hours after the United States Department of Justice announced a $4.3 billion deal With Binance, the exchange has seen a net outflow of $956 million in Ethereum. However, Binance's total holdings rose to over $65 billion.
“[W]Withdrawals continue and we are not seeing a mass exodus of funds,” Nansen said. “In the past, Binance has processed higher outflow volumes and negative net flows: June 2023 after the SEC sued Binance, December 2022 after insolvency rumors, and the immediate fallout from FTX.”
Here is our latest update on @binance12 hours after our previous
At the time of writing, withdrawals are continuing and we are not seeing a mass exodus of funds.
Over the last hour on Ethereum, Binance has a negative net flow of $17 million (more leaving the exchange than... pic.twitter.com/yQPtMl5ue8
-Nansen (@nansen_ai) November 22, 2023
Nansen reported that Tether holdings (USDT) on Binance was the one that decreased the most in the last 24 hours with approximately $246 million. However, holdings of XRP and TrueUSD (TUSD) “remain stable,” according to the company.
Related: Binance CEO's fall is "the end of an era" - Charles Hoskinson
The report followed turmoil at Binance on November 21, when the company reached a plea deal with US officials from the Department of Justice, Treasury and the Commodity Futures Trading Commission, allowing the exchange will continue to operate under regulatory scrutiny. CZ announced that there was resigned as CEOreplaced by Binance's global head of regional markets, Richard Teng.
On November 22, Teng saying Binance's fundamentals were "very strong" following the agreement with the Department of Justice and the change in leadership. The company still faces a lawsuit from the U.S. Securities and Exchange Commission.
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