Despite the recent settlement of charges against Binance and its CEO Changpeng “CZ” Zhao in the United States, there has been no significant surge in withdrawals from the Binance exchange.
The world’s largest cryptocurrency exchange by volume, Binance, experienced a notable event with the charging and subsequent resignation of its influential CEO. However, contrary to expectations, the cryptocurrency markets did not witness a crash.
On-chain analytics provider Nansen reported on November 22 that there was no mass exodus of funds from the exchange within the 24 hours following the news. While there was a slightly elevated outflow, with a $956 million negative net flow in the day following the announcement, it was not deemed alarming.
Remarkably, Binance’s total holdings value increased to $65.2 billion as cryptocurrency asset prices saw a rise. Nansen pointed out that there were two larger outflows from Binance over the past year—one in December 2022 after insolvency rumors and the immediate aftermath of FTX, and the other in June after the SEC sued the company.
Addressing the financial implications of the $4.3 billion fine faced by Binance, it was reported on November 22 by BeInCrypto that the exchange could likely pay the full amount without selling any cryptocurrencies, given its possession of over $6 billion in corporate assets. The new CEO, Richard Teng, emphasized the strength of Binance’s fundamentals, stating, “The fundamentals of our business are VERY strong.” He highlighted that Binance remains the world’s largest crypto exchange by volume, has a debt-free capital structure, modest expenses, and robust revenues and profits despite the low fees charged to users.
The cryptocurrency markets have fully rebounded from the minor disturbance caused by the Binance news. Total capitalization is up 4.8% on the day, reaching $1.48 trillion, with $70 billion entering the space over the past 24 hours. Bitcoin has gained 3.8% on the day, reaching $37,430 during the Thursday morning Asian trading session, while Ethereum has experienced a 5.4% increase, reaching $2,068 at the time of writing.
