Image
Image
27-29 May, 2025
Image 27-29 May, 2025

Las Vegas, NV

Skip to content
Subscribe
  • Home
  • Services
  • Video
  • Events
Subscribe

Reading

Binance Outflows: Navigating a Sea of Challenges
News Legal

Binance Outflows: Navigating a Sea of Challenges

The departure of Changpeng Zhao (CZ) as CEO and its legal challenges, apparently spooked customers and caused significant Binance outflows.
Conor Chepenik
By: Conor Chepenik
Jan 22, 2024
3 min read
Binance Outflows: Navigating a Sea of Challenges

Since the departure of Changpeng Zhao (CZ) as CEO, Binance has been facing funds outflows and dealing with significant legal challenges. Zhao’s stepping down following a plea of guilt to charges including money laundering and violations of the Bank Secrecy Act, presumably scared the customers and caused the Binance outflows.

This admission of guilt resulted in a landmark settlement with the DOJ, where Binance agreed to pay over $4 billion. Despite settling with the DOJ, Binance continues to face legal battles with the SEC. The exchange argues that the SEC lacks statutory authority over exchanges’ sales of digital assets, a point of contention in ongoing lawsuits. 

Binance Outflows: Impact on Binance’s Operations

The legal issues surrounding Binance have significantly affected the company’s operations. Allegations have been made that Binance, under the leadership of its CEO, Changpeng Zhao (CZ), has been intentionally evading compliance with U.S. laws. This includes inadequate implementation of Know-Your-Customer (KYC) and Anti-Money Laundering (AML) policies, which has allowed sanctioned entities to conduct transactions on the platform. 

In an attempt to address these concerns, Binance.US was established as a dedicated platform for the U.S. market. However, the efficacy of this move has been under scrutiny, as it remains unclear whether it has effectively resolved the compliance issues that Binance faces.

Financial Outflows and Market Response

Following all these developments, “Binance saw $800 million in outflows after news broke of Changpeng Zhao’s plea deal.” However, Binance still holds a significant amount of assets, indicating its resilience amid these challenges. The Binance native token, BNB, has also gained back most of the value it lost during these times, reflecting the market might believe that the plea deal could be enough to stop Binance from going under.

binance bnb - binance outflows
BNB recovered most of its loses — Source

Future Prospects

Despite these setbacks, predictions indicate that Binance might soon emerge from its legal woes. The departure of CZ from Binance and the subsequent legal and financial challenges mark a significant period in the digital-asset exchange’s history.

The future of Binance, in the post-CZ era, remains a closely watched topic, with its ability to navigate through these regulatory and challenges being crucial for its long-term success and stability in this dynamic market.

The plea deal CZ stuck has been referred to by some as allowing a financial colonoscopy for Binance. It will be interesting to watch where the chips fail in the coming years.

Stay on top of Bitcoin
news, get weekly updates
in your inbox.

Recommended News

Legal
Legal
Fake Ledger Live App Discovered Targeting MacOS Users
May 24, 2025
4 min read
By: Alex Lari
Legal
Legal
Retired Artist Loses 17.5 BTC to Coinbase Impersonators
May 20, 2025
3 min read
By: Alex Lari
Legal
Legal
Coinbase Data Breach and $20M Ransom: What We Know So Far
May 17, 2025
3 min read
By: Alex Lari
All News
Accelerating Adoption
News
  • Adoption
  • Legal
  • Markets
  • Mining
  • Opinion
  • Press Release
  • Learn
  • Sponsored
Company
  • About Us
  • Brand Assets
  • Newsletter
  • Services
  • Site Map
  • Terms & Privacy
Connect
  • Contact Us
  • Contribute
  • Services
  • Media Partner
  • RSS
  • Videos
Social Media
  • Twitter
  • YouTube
  • Telegram
  • LinkedIn
  • Instagram
  • Nostr
  • TikTok
  • Flipboard

© A Bitcoin-Focused Company | 256 Media, 2024

Language Switcher
Search
  • News
    • Adoption
    • Legal
    • Markets
    • Mining
    • Opinion
    • Press Release
    • Learn
    • Interviews
  • Services
  • Video
  • Events
  • News
    • Adoption
    • Interviews
    • Learn
    • Legal
    • Markets
    • Mining
    • Opinion
    • Press Release
  • About Us
  • Contact
  • Newsletter
Search

Popular Articles

BFF25 Event Recap: Unique Fusion of Bitcoin, Cinema & Art
May 31, 2025 · 3 min
Cantor Fitzgerald Launches $2B Bitcoin-Backed Lending Program
May 31, 2025 · 3 min
JD Vance in Las Vegas: “100 Million Americans will Hold Bitcoin”
May 30, 2025 · 4 min
Trump Media Will Raise $2.5 Billion to Build Bitcoin Treasury
May 29, 2025 · 3 min
Blockstream Unveils “Future of Finance Runs on Bitcoin” Vision
May 28, 2025 · 5 min
Michael Saylor Says Proof-of-Reserves is a Bad Idea
May 28, 2025 · 3 min

Bitcoin Only
Newsletter

Get weekly news roundups direct to your inbox!