Binance Faces Massive Crypto Withdrawal After DOJ Settlement
Cryptocurrency investors recently withdrew close to $1.23 billion worth of crypto in one day from Binance, the leading centralized exchange (CEX). This massive outflow followed news about Binance’s settlement with the Department of Justice (DOJ) of the United States, where the exchange agreed to pay a $4.32 billion fine, and its former CEO, Changpeng Zhao (CZ), stepped down from his role.
As a result of this news, Binance’s cryptocurrency reserves, currently at $67.65 billion, experienced a significant outflow. Interestingly, 32% less was withdrawn in the 24-hour period compared to the first payment of $1.81 billion to the DOJ, which is required to be completed within the next 15 months.
Changes in Other Major Exchanges
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On the other hand, OKX, the second-largest centralized exchange by assets under custody, saw a 24-hour inflow of $98.83 million. However, Bitfinex lost $20.16 million of its $9.09 billion clean assets in the third position. OKX currently holds $12.03 billion in assets.
Binance Reserves: BTC, ETH, and BNB
As of November 1, Binance held 609,310.54 BTC ($22.24 billion), with 584,659.077 BTC belonging to its customers. Additionally, it had 4,119,859 ETH ($8.24 billion), with 3.91 million ETH coming from its customers. The exchange also held 34.78 million of its native token, BNB Chain (BNB).
However, due to recent events and settlements with the DOJ, changes are expected in Binance’s crypto holdings which will be visible in the next Proof of Reserves by December 1.
Hot Take: Impact on Cryptocurrency Market
The massive outflow from Binance following its settlement with the DOJ has raised concerns about the impact on the overall cryptocurrency market. Investors are closely watching for potential changes in Binance’s crypto holdings and how they may affect market dynamics moving forward.
