Crypto
Binance’s Bitcoin Reserves Decreased by $200 Million Amid Legal Troubles
courtesy of bitcoinist.com
CryptoQuant Data Shows Bitcoin Moving from Binance to Coinbase
According to on-chain data collected by CryptoQuant, Bitcoin is being transferred from Binance to Coinbase. While Binance's reserves have decreased by $200 million, Coinbase's reserves have grown by approximately 12,000 BTC. This movement is believed to be driven by individual investors pulling their money out of Binance due to legal concerns.
Investors Seek Reassurance on Compliant Exchanges
Analysts suggest that retail investors are shifting their funds away from Binance and onto compliant or licensed exchanges. Greta Yuan, the head of research at VDX, a Hong Kong-based digital asset platform, notes that lingering apprehension prevails in the market due to recent legal challenges faced by Binance. Investors are seeking reassurance by moving their funds to exchanges that comply with regulations.
Binance Accused of Using Bitcoin Reserves to Support BNB Value
The US Securities and Exchange Commission (SEC) and cryptocurrency commentators have accused Binance of using its Bitcoin reserves to support the value of its own token, BNB. Binance's CEO, Changpeng Zhao, and the exchange strongly deny these allegations.
Withdrawals and Market Liquidity Drop After Settlement Announcement
Blockchain company Nansen reports that Binance saw withdrawals of over $1 billion in a single day after Zhao resigned and acknowledged guilt in a plea agreement with the US Justice Department. As a result, market liquidity dropped by 25% as market makers reduced their positions.
Binance Settles with DOJ for $4.3 Billion
Binance has reached a settlement with the US Department of Justice (DOJ) for $4.3 billion. The settlement includes a $1.8 billion fine against the cryptocurrency exchange and a $2.5 billion forfeiture. Binance is required to withdraw from US markets, financial remittances, and adhere to strict compliance guidelines.
BNB Value Declines by 14%
Following the announcement of the settlement and Changpeng Zhao's resignation, the value of BNB dropped by 14%, from $264 to $227. Currently, the value stands at $233, showing a 20% decrease compared to the same period last year.
US Prosecutors Seek Detention of Zhao
US prosecutors are calling for the detention of Changpeng Zhao within the country instead of allowing him to return to his residence in Dubai until his sentencing in February. Zhao could face up to 18 months in prison for his involvement in the failure to implement adequate anti-money laundering measures at Binance.
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Christian, a journalist and editor with leadership roles in Philippine and Canadian media, is fueled by his love for writing and cryptocurrency. Off-screen, he's a cook and cinephile who's constantly intrigued by the size of the universe.
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