Binance Resilience: Outflows After Settlement Not a Mass Exodus

In the aftermath of the civil and criminal proceedings against Binance and CEO Changpeng “CZ” Zhao being settled, blockchain analytics firm Nansen reported that outflows from the cryptocurrency exchange did not constitute a “mass exodus of funds.”

Approximately twenty-four hours after the United States Department of Justice announced a $4.3 billion settlement with Binance, Nansen stated in a November 22 X post that the exchange had experienced a net outflow of $956 million on Ethereum.

Nevertheless, Binance’s aggregate holdings surpassed $65 billion. Nansen stated, “Withdrawals continue, and there is no mass exodus of funds.”

” In the past, Binance has processed greater volumes of negative netflow and outflow in June 2023, after the SEC lawsuit, December 2022, in the wake of insolvency rumors, and the immediate aftermath of FTX.”

Tether holdings on Binance decreased the most over the previous twenty-four hours, by approximately $246 million, according to Nansen.

The firm reports that, nevertheless, holdings of XRP and TrueUSD (TUSD) “remain stable.”

The report surfaced following the uproar that Binance experienced on November 21, when the company entered into a plea agreement with U.S. authorities from the Treasury, Justice Department, and Commodity Futures Trading Commission, which granted the exchange continued regulatory oversight.

CZ declared his resignation as CEO, and Richard Teng, global director of regional markets for Binance, assumed his position.

Teng stated on November 22 that Binance’s fundamentals were “extremely solid” in the wake of the DOJ agreement and leadership transition.

A lawsuit from the U.S. Securities and Exchange Commission continues to be lodged against the firm.