READ HERE: The world’s largest crypto exchange Binance saw a sharp uptick in withdrawals after its founder and CEO Changpeng Zhao pleaded guilty to criminal and civil charges in the US, it was reported on Wednesday. The company also faces over $4 billion in fines.
Outflows from Binance have amounted to more than $1 billion in the past 24 hours, not including bitcoin, market data revealed. Its liquidity has dropped 25% over the same period as market players pulled back their positions, according to data provider Kaiko.
Binance’s native token BNB fell by more than 9%, CoinGecko data showed. The crypto exchange holds around $2.8 billion worth of BNB tokens, according to blockchain analysis firm Nansen.
Although the outflows are significant, assets of more than $65 billion remain on the platform, meaning there has not yet been a “mass exodus” of funds from the exchange. Experts say Binance is likely “capitalized enough to withstand” a sudden withdrawal of investors.