Blockchain analytics firm Nansen reported that following a settlement for civil and criminal charges against Binance and CEO Changpeng “CZ” Zhao, outflows from the crypto exchange didn’t result in a “mass exodus of funds.”
In a Nov. 22 X (formerly Twitter) post, Nansen said that roughly 24 hours after the United States Department of Justice announced a $4.3 billion settlement with Binance, the exchange had experienced a $956 million net outflow on Ethereum. However, Binance’s total holdings increased to more than $65 billion.
“Withdrawals are continuing, and we’re not seeing a mass exodus of funds,” said Nansen. “In the past, Binance has processed higher volumes of outflow and negative netflow: Jun 2023 after the SEC sued Binance, December 2022 after insolvency rumors, and the immediate aftermath of FTX.”
Here’s our latest update on @binance, 12 hours after our previous one
At the time of writing, withdrawals are continuing, and we’re not seeing a mass exodus of funds
Over the past hour on Ethereum, Binance has a $17M negative netfow (more leaving the exchange than what’s… pic.twitter.com/yQPtMl5ue8
— Nansen (@nansen_ai) November 22, 2023
Nansen reported that holdings of Tether (USDT) on Binance had decreased the most over the last 24 hours by roughly $246 million. However, holdings of XRP (XRP) and TrueUSD (TUSD) “remain steady,” according to the firm.
Related: Binance CEO’s downfall is ‘the end of an era’ — Charles Hoskinson
The report followed upheaval at Binance on Nov. 21 as the firm reached a plea deal with U.S. officials at the Justice Department, Treasury Department, and Commodity Futures Trading Commission allowing the exchange to continue to operate under regulatory scrutiny. CZ announced he had stepped down as CEO, replaced by Binance’s global head of regional markets, Richard Teng.
On Nov. 22, Teng said the fundamentals at Binance were “very strong” following the DOJ deal and change in leadership. The firm still faces a lawsuit from the U.S. Securities and Exchange Commission.
