In a significant development within the cryptocurrency sector, Binance, the world’s foremost cryptocurrency exchange, has seen a substantial increase in outflows. This comes in the wake of Changpeng Zhao stepping down from his role as CEO and admitting to several securities law infringements during a crucial court proceeding. Remarkably, the exchange witnessed withdrawals exceeding $1 billion within a 24-hour period.
The resignation of Changpeng Zhao and the ensuing $4.3 billion penalty against Binance have caused a significant disturbance in the industry, leading to a considerable transfer of funds away from the beleaguered exchange.
Crypto Users Transfer Funds Away from Binance Following Legal Troubles
The cryptocurrency community reacted promptly to the news of Changpeng Zhao’s admission of guilt and subsequent resignation. Concurrently, recent statistics from DefiLlama show an astonishing 24-hour outflow from Binance, surpassing $1 billion, with a net outflow of $1.172B over the course of a week.
The significant withdrawals highlight the apprehensions and doubts about the exchange in the wake of legal issues and changes in leadership. To put it differently, this sudden departure was triggered by the admission of guilt by Binance’s co-founder, Changpeng Zhao, who confessed to breaching the Bank Secrecy Act, leading to a reorganization of the leadership.
Nevertheless, as Binance deals with the repercussions of its founder’s plea agreement, other exchanges are experiencing noticeable inflows. According to DefiLama data, OKX has emerged as the biggest winner, with net inflows of $152.02 million in the last 24 hours, positioning itself to benefit from Binance’s difficulties.
Furthermore, Bybit and Kucoin have seen significant daily inflows of $51.34 million and $31.58 million, respectively, indicating a potential shift in user trust and confidence in the cryptocurrency exchange market. At the time of reporting, the BNB price experienced a decline of 9.30%, trading at $236.13 on November 22. On the other hand, the crypto’s trading volume saw a significant increase of 59% over the past 24 hours, reaching $2.57 billion at the same moment.
