Binance Experiences Massive Withdrawals of Over $1.3 Billion in 24 Hours
In the last 24 hours, Binance, the leading cryptocurrency exchange by trading volume, has faced significant challenges.
More than $1.4 billion in funds have left the platform, according to official data from DeFiLlama and its CEX Transparency analysis, adding to a host of issues the company is currently facing.
The bulk of these withdrawals comprise $878 million in stablecoin Tether (USDT) and $167 million in Bitcoin (BTC). However, other cryptocurrencies such as Solana (SOL), Tron (TRX), BUSD, and XRP have also seen significant outflows.
While this decrease in funds is notable, it falls short of the $12 billion in withdrawals that Binance handled following the FTX collapse earlier this year, it is a striking sum and several reasons are compiled for the case.
A SERIES OF INTERNAL CHANGES AT BINANCE AND REGULATIONS
The resignation of several high-level executives has shaken the company. Stéphanie Cabossioras, director of Binance’s French subsidiary, is the latest to leave her position.
His resignation joins a growing list that includes chief strategy officer Patrick Hillmann, senior vice president of compliance Steven Christie, general counsel Han Ng and chief research officer Matthew Price.
The constant departure of executives raises questions about the stability of leadership at the company in certain regions and departments around the world.
In addition to internal challenges, Binance faces increasing regulatory pressure globally. In Brazil, a congressional committee has called for the impeachment of Binance CEO Changpeng Zhao and other executives, accusing them of carrying out fraudulent transactions and operating without proper authorization.
Meanwhile, in the United States, the exchange is immersed in legal disputes with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Both agencies allege that Binance has violated federal laws with its operations.
Despite these challenges, Binance remains a dominant force in the cryptocurrency world, with total digital asset value amounting to $57 billion.
However, the combination of fund outflows, executive resignations and regulatory issues raises questions about the future of this leading platform in the crypto ecosystem.
Filed under: News - @ October 20, 2023 2:32 pm