Capital Flight from Binance Subsidies: Report
After last week's $4.3 billion settlement with the United States Department of Justice, withdrawals from crypto exchange Binance appear to have slowed significantly.
According to data from blockchain analytics firm Nansen, Binance has seen a net outflow of $87.4 million in Ethereum token deposits over the past seven days. Meanwhile, net mining of multi-chain tokens, which includes Ether (ETH), BNB (BNB), Avalanche's AVAX (AVAX), and Polygon's MATIC (MATIC), reached $59.2 million in the same period. At the beginning of the $4.3-billion settlement, Binance users spent more than $1 billion.
Following an initial surge in withdrawals from @binance last week in response to news of @cz_binance's departure and legal challenges, outflows from the exchange have been moderated.
Ethereum: +$86.7M net flow in 7 days Multichain: -$68M in 7 days
It's business as usual pic.twitter.com/iMINkTzcBZ
— Nansen (@nansen_ai) November 30, 2023
Since then, Binance users have spent more than $7.62 billion, but have deposited $7.56 billion in digital assets, according to Nansen data. The price of BNB, the official token of Binance's BNB Smart Chain, remained largely unchanged at $227 last month.
Immediately following the settlement, Changpeng Zhao resigned as Binance CEO and chairman of the board of directors of Binance.US on November 29. As part of the settlement, Zhao pleaded guilty to money laundering and faces 18 months in prison. 10 years in prison, how the federal sentencing guidelines are interpreted. Sentencing is scheduled for February 2024.
Richard Teng, former head of global regional markets at Binance, has been appointed CEO following Zhao's departure. In his first blog post as CEO, Teng said, “I promise blockchain opportunities such as financial inclusion, cross-border remittances and reducing transaction costs. I also see an opportunity to empower individuals to have more control over their personal data.
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