Binance sees $956 million in outflows after Zhao steps down to settle US probe
crypto exchange Binance over the past 24 hours, market data showed, after its chief, Changpeng Zhao, stepped down and faced prison time after pleading guilty on Tuesday to settle a years-long U.S. illicit finance probe.
The deal, in which Binance will pay $4.3 billion to U.S. authorities, raises questions over the future of the world's largest crypto exchange and marks another blow for an industry beset by scandals. Zhao has been replaced by Richard Teng, a senior Binance executive who joined in 2021, the company said.
It remained unclear on Wednesday how much jail time, if any, Zhao would ultimately serve, and how much influence he — as Binance's founder and major shareholder — could continue to exert on Binance under the terms of the settlement.
Some analysts also noted that the deal was unlikely to end the exchange's U.S. legal woes, with Securities and Exchange Commission charges alleging Binance broke U.S. securities laws still unresolved.
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View Details» «Binance is not entirely out of the woods. The ongoing civil lawsuit with the SEC remains a concern for the exchange, which (is) likely to result in further fines,» wrote Robert Le, a crypto analyst at data firm PitchBook.
Data from crypto analytics platform Nansen, which does not include bitcoin flows, signaled some investors had been rattled by the news, pulling $956 million from the exchange. Still, the outflows were small relative to the more than $65
