Binance, the largest cryptocurrency exchange globally, has experienced a significant outflow of funds exceeding $1 billion within a 24-hour period. This occurrence follows the former CEO, Changpeng “CZ” Zhao, pleading guilty to charges relating to money laundering violations and agreeing to settle with the U.S. Justice Department for a sum of $4.3 billion.
Data from DefiLlama, a DeFi TVL aggregator, reveals that Binance has witnessed substantial outflows totaling $1.01 billion in the past 24 hours, with a net outflow of $703 million over the previous week. Despite these recent outflows, Binance has still recorded net inflows of $1.68 billion in the last month, making it the leading centralized crypto exchange tracked by DeFiLlama.
In contrast, OKEx has experienced significant gains as users migrate from Binance. The exchange observed net inflows of $152 million within the past day, marking the highest among all centralized crypto exchanges monitored by DeFiLlama.
Furthermore, following Binance’s settlement, more than $200 million in Crypto Futures Bets have been liquidated. CoinGlass data indicates that crypto perpetual futures positions worth $227 million were liquidated in the last 24 hours, with bullish longs accounting for almost 80% of the total. Bitcoin longs and shorts worth over $67 million were also affected, representing one of the most substantial liquidation events in recent months.
Ether (ETH) futures traders suffered losses amounting to $27 million, while Solana’s SOL traders faced $10 million in liquidations. BNB, associated with the Binance ecosystem, experienced relatively lower liquidations at $6 million. Notably, traders at Binance accounted for $99 million in liquidations, the highest among counterparties, with OKEx closely following at $62 million.
Moving on to the settlement, Binance and its CEO, Changpeng Zhao, have pleaded guilty to criminal charges linked to anti-money laundering and U.S. sanctions violations. As part of their agreement with the U.S. Justice Department, Binance will pay a substantial fine of $4.3 billion, and Zhao will step down as CEO. Additionally, CZ faces a personal fine of $200 million and a maximum prison sentence of 10 years.
The charges against Binance include money laundering violations, violation of U.S. sanctions, and conspiracy to conduct an unlicensed money transmission business. The company has acknowledged failing in its duty to prevent and report suspicious transactions associated with terrorist organizations such as Hamas’ al-Qassam Brigades, Islamic State, and al Qaeda.
Apart from the criminal charges, Binance is currently facing two civil lawsuits in the United States. The Commodities and Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have filed these lawsuits, alleging various violations, including misappropriation of client assets, anti-money laundering violations, and the artificial inflation of trading volumes.