- There’s a liquidation of more than $1 billion from Binance over the past 24 hours.
- Okex saw a net inflow of over $150 million
The latest legal development between the Securities and Exchange Commission and Binance sprouts new reactions. Especially within the crypto community, many traders are getting scared of what might happen to the Binance exchange. Hence, they are taking their money away from it. But there’s another exchange benefiting from this.
Binance is Suffering, While Okex Benefits
- Since the company’s CEO announced leaving the crypto exchange, many things aren’t going well for Binance. So, Changpeng Zhao said he will resign as the CEO of the largest crypto exchange after the months-long legal battle with the US regulator. According to the Securities and Exchange Commission, they said Binance enabled the trading of unregistered securities on their platform.
- Furthermore, there were also allegations of money laundering on the platform. However, the most recent event is the settlement amounting to $4.3 billion with the U.S. Justice Department.
Binance Experience Massive Outflows
- Due to these issues, many crypto traders and investors are removing their funds from the crypto exchange in large numbers. So, according to information from DeFi TVL aggregator DefiLlama, there was a hefty 1.01 billion dollar outflow coming from the largest crypto exchange. This is similar to the case of FTX. However, they’re already providing assurance from CZ Binance that the funds of customers and users are very safe.
- A good thing to point out is that the recent outflows of over $1 billion further contribute to the $703 outflows of the past week. So, the calculation of all these brings all the net inflows to land at $1.68 billion over the past month.
Okex is Greatly Benefiting From the Situation
- While Binance might be in a very ugly situation, another crypto exchange with the name Okex is benefiting. So, it seems like as many traders are withdrawing their funds from Binance, they are sending them back to Okex.
- A major point is that Okex is now seeing a significant influx of users over the past few days. So, this is helping the crypto exchange to have a massive increase in their net inflows. In the past 24 hours after CZ’s resignation, there was a net inflow of more than $150 million.
More Details About the Binance-Settlement with the US Government
- The charges against Binance and the now-former CEO aren’t light. So, the major part of it was mainly about violating the laws with regard to US sanctions and other money laundering activities.
- Due to all these, Binance will pay a penalty fee of $4.3 billion. Secondly, Changpeng Zhao will also step down as the CEO of the crypto exchange. So, CZ Binance is also facing a personal penalty of a $200 million fine and about ten years in prison.
Wrapping Up
In conclusion, Binance is going to pay a hefty sum of money to resolve its issues with the United States. So, the US regulator, the SEC, demands as much as $4.3 billion from the crypto exchange. On the other hand, another crypto exchange, Okex, is benefiting heavily from this latest occurrence. Apparently, more users are moving their funds to Okex.
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
