Despite Binance’s DOJ settlement, no mass exodus of funds: Nansen
Roughly $65 billion worth of assets remain on Binance after the exchange agreed to pay, forfeit $4.3 billion Tuesday, Nansen data shows
Shutterstock-Pixelsquid and Broccoli Queen/Shutterstock modified by Blockworks
Though roughly $1 billion in value left Binance amid the company’s settlement with US regulators and founder Changpeng Zhao stepping down, the exchange’s outflows have stabilized.
Blockchain analytics firm Nansen said in a Wednesday X post that while withdrawals are continuing, “we’re not seeing a mass exodus of funds.”
Binance had seen net outflows — more value leaving the exchange than entering — of $956 million in the past 24 hours on Ethereum as of 6:30 am ET Wednesday, the company said.
But those net outflows have slowed, as only $17 million had come in the previous hour.
“Binance has seen significant exchange outflows since the announcement, but relative to their total holdings, it’s quite small,” a Nansen spokesperson said in an email. “There is still well over $65 billion of assets on the platform.”
Tether (USDT) and bitcoin (BTC) made up the majority of holdings on Binance, each accounting for nearly $19 million in value at that time.
There remains about $2.8 billion worth of Binance Coin (BNB) held at the exchange. BNB’s price was about $231.50 at 10 am ET — down 9.3% in the past 24 hours and down about 1% in the last hour.
Read more: Crypto assets dip as Binance settlement unfolds — but what’s next?
The US Department of Justice said Tuesday Binance had agreed to pay $4.3 billion in fines and forfeitures. The announcement came after an unsealed indictment was made public, accusing Binance and Zhao of violating anti-money laundering laws and sanctions regulations. Zhao also agreed to step down from his CEO post.
Industry watchers have said the guilty pleas by Binance and Zhao could be a net positive for the space — particularly as it appears the exchange will continue to operate.
In a Tuesday statement on X, Zhao said “Binance will continue to grow and excel with the deep bench it has” — naming former global head of regional markets Richard Teng as CEO.
“It’s positive to see the US DOJ working with Binance to close this out and thereby avoid a Binance collapse,” ETC Group CEO Tim Bevan said in a statement. “Market reaction — BNB coin [and] withdrawals from Binance — suggests so far that Binance can swallow these penalties.”
Teng called Binance’s business fundamentals “very strong” in an X post, citing a separate post by Coinbase director Conor Grogan that claims the exchange holds $6.35 billion in total assets, excluding funds held off-chain or in wallets.
The fine is relatively small given Binance’s financial reserves, argued Stefan Rust, CEO of data provider Truflation — making the company “extremely financially sound.”
“The legitimizing of one of the industry’s biggest players will also help incumbents feel a level of comfort that will allow us all to move forward into a new bull market,” Rust added.
A Binance spokesperson did not return a request for comment.
Get the news in your inbox. Explore Blockworks newsletters:
- Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
- Empire: Start your morning with the top news and analysis to inform your day in crypto.
- Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
- 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
- Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
- The Drop: For crypto collectors and traders, covering apps, games, memes and more.
- Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
