Binance sees $956M outflows as Zhao settles US probe

This sudden exodus follows the resignation of Binance's CEO, Changpeng Zhao, who recently pleaded guilty to resolve a prolonged U.S. investigation into illicit financial activities. As part of the settlement, Binance will pay a hefty $4.3 billion to U.S. authorities, casting doubts on the exchange's future.

Changpeng Zhao, a prominent figure in the crypto industry, has been replaced by Richard Teng, a senior Binance executive. Questions linger about the duration of Zhao's potential prison sentence and his continued influence on Binance as its founder and major shareholder.

While the settlement addresses the immediate legal concerns, Binance still faces ongoing charges from the U.S. Securities and Exchange Commission (SEC) related to alleged violations of U.S. securities laws, adding to the uncertainty.

The impact of this news is evident, with investors withdrawing a substantial $956 million from Binance. However, this represents a relatively small portion compared to the exchange's total assets of over $65 billion.

Changpeng Zhao's legal journey includes a $175 million bail bond and restrictions on his travel, with the possibility of a shorter prison sentence compared to initial expectations. Despite his major ownership stake, the settlement bars him from any involvement in Binance's operation or management, though he remains available for consultation. The crypto industry is closely watching as Binance navigates this challenging period in its history.