Despite Binance’s DOJ settlement, no mass exodus of funds: Nansen

Roughly $65 billion worth of assets remain on Binance after the exchange agreed to pay, forfeit $4.3 billion Tuesday, Nansen data shows

article-image

Shutterstock-Pixelsquid and Broccoli Queen/Shutterstock modified by Blockworks

share

Though roughly $1 billion in value left Binance amid the company’s settlement with US regulators and founder Changpeng Zhao stepping down, the exchange’s outflows have stabilized. 

Blockchain analytics firm Nansen said in a Wednesday X post that while withdrawals are continuing, “we’re not seeing a mass exodus of funds.”

Binance had seen net outflows — more value leaving the exchange than entering — of $956 million in the past 24 hours on Ethereum as of 6:30 am ET Wednesday, the company said

But those net outflows have slowed, as only $17 million had come in the previous hour. 

Binance has seen significant exchange outflows since the announcement, but relative to their total holdings, it’s quite small,” a Nansen spokesperson said in an email. “There is still well over $65 billion of assets on the platform.”

Tether (USDT) and bitcoin (BTC) made up the majority of holdings on Binance, each accounting for nearly $19 million in value at that time.

There remains about $2.8 billion worth of Binance Coin (BNB) held at the exchange. BNB’s price was about $231.50 at 10 am ET — down 9.3% in the past 24 hours and down about 1% in the last hour.  

Read more: Crypto assets dip as Binance settlement unfolds — but what’s next?

The US Department of Justice said Tuesday Binance had agreed to pay $4.3 billion in fines and forfeitures. The announcement came after an unsealed indictment was made public, accusing Binance and Zhao of violating anti-money laundering laws and sanctions regulations. Zhao also agreed to step down from his CEO post.

Industry watchers have said the guilty pleas by Binance and Zhao could be a net positive for the space — particularly as it appears the exchange will continue to operate.  

In a Tuesday statement on X, Zhao said “Binance will continue to grow and excel with the deep bench it has” — naming former global head of regional markets Richard Teng as CEO.

“It’s positive to see the US DOJ working with Binance to close this out and thereby avoid a Binance collapse,” ETC Group CEO Tim Bevan said in a statement. “Market reaction — BNB coin [and] withdrawals from Binance — suggests so far that Binance can swallow these penalties.”

Teng called Binance’s business fundamentals “very strong” in an X post, citing a separate post by Coinbase director Conor Grogan that claims the exchange holds $6.35 billion in total assets, excluding funds held off-chain or in wallets.

Loading Tweet..

The fine is relatively small given Binance’s financial reserves, argued Stefan Rust, CEO of data provider Truflation — making the company “extremely financially sound.”

“The legitimizing of one of the industry’s biggest players will also help incumbents feel a level of comfort that will allow us all to move forward into a new bull market,” Rust added.

A Binance spokesperson did not return a request for comment.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Cover Vertex.jpg

Research

The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.

article-image

Partnering with EtherFi and Angle, the fully on-chain perp DEX features bespoke collateral

article-image

Sponsored

Gavin Wood introduced the next evolutionary step for the Polkadot network: the Join-Accumulate Machine, or JAM

article-image

The side events were the places to be at Consensus 2024, according to attendees

article-image

Also, who’s come out swinging in the spot ether ETF fee war — and who could undercut them

article-image

I know it is not in their nature, but US regulators could learn a lot by researching the digital asset frameworks that overseas regulators have already gotten right

article-image

Also, the ETF hype train can count out at least one member