{"id":129266,"date":"2023-11-23T08:46:45","date_gmt":"2023-11-23T08:46:45","guid":{"rendered":"https:\/\/www.techopedia.com"},"modified":"2023-11-26T18:27:33","modified_gmt":"2023-11-26T18:27:33","slug":"binance-sees-1-2-billion-leave-exchange-in-a-week-after-guilty-pleas","status":"publish","type":"post","link":"https:\/\/www.techopedia.com\/binance-sees-12-billion-leave-exchange-in-a-week","title":{"rendered":"Binance Sees $1.2 Billion Leave Exchange in A Week After Guilty Pleas"},"content":{"rendered":"

Binance, the world’s largest cryptocurrency exchange, has seen its monthly net flows turn negative after users withdrew more than $1 billion worth of funds over the past few days amid recent drama.\u00a0<\/span><\/p>\n

According to\u00a0<\/span>data from DeFi TVL aggregator DefiLlama<\/span><\/a>, Binance has registered $456 million in outflows over the past day, with $1.2 billion in net outflows over the past week.<\/span><\/p>\n

Before Binance’s guilty plea on Tuesday, the exchange had more than $2 billion in monthly net inflows. But with the recent week of turmoil, the exchange has seen more than $56 million in monthly net outflow.<\/span><\/p>\n

Binance is still the world’s largest <\/span>crypto exchange<\/span><\/a>\u00a0by far, with more than $68.4 billion in assets.\u00a0<\/span><\/p>\n

The flee of funds from Binance came after its CEO, <\/span>Changpeng Zhao<\/span><\/a>,\u00a0<\/span>pleaded guilty to criminal charges<\/span><\/a>\u00a0related to anti-money laundering<\/a> and violations of US sanctions. The plea was made as part of a comprehensive agreement reached with the US Department of Justice, allowing the company to continue its operations.\u00a0<\/span><\/p>\n

However, as part of the settlement, Zhao will step down as CEO, and Binance will be required to pay a substantial $4.3 billion fine. Furthermore, Changpeng Zhao will also personally pay $200 million in fines.\u00a0<\/span><\/p>\n

New CEO Suggests Ability to Pay $4.3Bn Fines<\/span><\/h2>\n

On Wednesday, new Binance CEO Richard Teng hinted at the exchange’s ability to pay the $4.3 billion it has been fined by the US Justice Department. Teng, who was named CEO of Binance, said in a recent post on X that the exchange is in good shape financially.\u00a0<\/span><\/p>\n

“The fundamentals of our business are VERY strong,” he wrote. “Binance continues to operate the world’s largest crypto exchange by volume, our capital structure is debt-free, expenses are modest, and, despite the low fees we charge our users, we have robust revenues and profits.”<\/span><\/p>\n

The statement came in reply to a post by Connor Lango, director of business development at\u00a0<\/span>Coinbase<\/span><\/a>, who said Binance will most likely be able to “pay full $4.3B DoJ fine with 0 crypto asset sales.”\u00a0<\/span><\/p>\n

Lango noted that after pulling out the exchange’s crypto holdings from their <\/span>Proof of Reserves<\/span><\/a>, he discovered that the exchange still had $6.35 billion in total assets and $3.19 billion in stablecoins.<\/span><\/p>\n

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The fundamentals of our business are VERY strong. <\/p>\n

Binance continues to operate the world's largest crypto exchange by volume, our capital structure is debt-free, expenses are modest, and, despite the low fees we charge our users, we have robust revenues and profits. https:\/\/t.co\/PHq2YS0CP5<\/a><\/p>\n

— Richard Teng (@_RichardTeng) November 22, 2023<\/a><\/p><\/blockquote>\n