There is no ‘cash flow’ following the Binance-DOJ deal – Nansen
Blockchain analytics firm Nansen reported that outflows from the cryptocurrency exchange did not result in a “mass exodus” following the dropping of civil and criminal charges against Binance and CEO Changpeng “CZ” Zhao.
In a November 22 X post, Nansen said that 24 hours after the United States Department of Justice announced a $4.3 billion settlement with Binance, the exchange experienced a net outflow of $956 million on Ethereum. However, Binance's total holdings have increased to more than $65 billion.
“[W]”Withdrawals are continuing, and we're not seeing a lot of migration,” Nansen said. “In the past, Binance has experienced massive outflows and negative network flows: June 2023 after the SEC sued Binance, December 2022 after bankruptcy rumors and FTX's immediate effect.”
Here is our latest update on @binance, 12 hours later
As of this writing, withdrawals are continuing, and we are not seeing much cash flow.
In the last hour on Ethereum, Binance has $17M in negative net worth (more left than the exchange is leaving… pic.twitter.com/yQPtMl5ue8
— Nansen (@nansen_ai) November 22, 2023
According to Nansen, Tether (USDT) holdings on Binance have significantly decreased by around $246 million in the last 24 hours. But holdings of XRP and TrueUSD (TUSD) “remain stable,” according to the firm.
Related: Binance CEO's downfall is ‘end of an era' – Charles Hoskinson
The report follows the upheaval at Binance on November 21 when the company reached a plea agreement with US officials from the Justice Department, Treasury and Commodity Futures Trading Commission to allow the exchange to continue operating under regulatory oversight. CZ announced his resignation as CEO, replaced by Binance Global Head of Regional Markets Richard Teng.
On November 22, Teng said Binance's fundamentals were “very strong” following the DOJ settlement and leadership change. The firm is still facing charges from the US Securities and Exchange Commission.
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