Binance Faces Legal Challenges as Withdrawals Exceed $1 Billion Mark

Binance’s Outflow Surpasses $1 Billion Amid Legal Turmoil

Binance, a prominent player in the cryptocurrency space, witnessed a substantial outflow of funds exceeding $1 billion in the wake of significant legal challenges and leadership changes. The departure of CEO Changpeng Zhao, who pleaded guilty to securities law violations, marked a transformative moment for the exchange.

This seismic shift in the crypto landscape has led to a surge in withdrawals from Binance, with a staggering $1 billion outflow recorded within a 24-hour period. The aftermath of Zhao’s guilty plea and the subsequent $4.3 billion fine against the exchange has created uncertainties and concerns, prompting a notable movement of funds away from Binance.

Binance’s Outflow Crosses $1 Billion

News of Changpeng Zhao’s guilty plea and resignation prompted swift reactions within the cryptocurrency community. Data from DefiLlama revealed a 24-hour outflow from Binance exceeding $1 billion, with a net outflow of $703.13 million over seven days.

The substantial withdrawals underscore the challenges Binance faces, and the uncertainties surrounding the exchange following legal issues and leadership changes. This sudden exodus follows the admission of guilt by Binance’s co-founder, Changpeng Zhao, for violating the Bank Secrecy Act, triggering a reshuffling of leadership.

While Binance grapples with the aftermath of its founder’s plea deal, other exchanges are witnessing notable inflows. DefiLama data shows that OKX emerged as the top gainer with $152.02 million in net inflows within the past 24 hours, positioning itself as a beneficiary of Binance’s challenges. Additionally, Bybit and Kucoin followed with 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.

How’s BNB Performing Amid The Legal Woes?

As of writing, the BNB price witnessed a slump of 9.30%, trading at $236.13 on November 22. In contrast, the trading volume of the crypto noted a surge of 59% over the last 24 hours to $2.57 billion at the same time.

Regarding the recent price fluctuations of BNB, it has experienced a 24-hour high of $269.92 and a low of $224.98 over the past 24 hours.

Despite the significant outflow from Binance, it remains the top crypto exchange in terms of asset holdings. As of writing, the crypto exchange had $67.68 billion in assets, maintaining its position as the leading exchange among others.