Binance sees nearly US$1 billion in outflows as Zhao steps down to settle US probe
channelnewsasia.comInvestors pulled about US$956 million from crypto exchange Binance over the past 24 hours, data firm Nansen reported on Wednesday (Nov 22), a day after its chief, Changpeng Zhao, stepped down and pleaded guilty to breaking US anti-money laundering laws.The deal, which will see Binance pay US$4.3 billion to US authorities to settle the years-long illicit finance probe, has raised questions over the future of the world's largest crypto exchange and marks another blow for an industry beset by scandals.
Zhao has been replaced by Richard Teng, a senior Binance executive who joined in 2021, the company said.The Nansen data does not include bitcoin flows but signals that Tuesday's news rattled some customers of the exchange.
Still, there is well over US$65 billion of assets on the platform, according to Nansen data."Binance has seen significant exchange outflows since the announcement, but relative to their total holdings, it’s quite small," Nansen analysts said.Investors pulled around US$1.43 billion from the crypto exchange and its US affiliate in June after the US Securities and Exchange Commission sued the companies.Binance did not immediately respond to a Reuters request for comment.While authorities have probed Zhao and Binance for years, Zhao's exit marks a dramatic development for one of the most powerful figures in the crypto industry.
Zhao, who resides in Dubai, entered his plea in a Seattle court on Tuesday.He agreed to pay a US$50 million fine and faces a maximum prison sentence of 18 months under federal guidelines.
