Binance, one of the world’s largest cryptocurrency exchanges, has reported an impressive surge in withdrawals, reaching a staggering $1.9 billion in the past 24 hours, according to report from blockchain analysis firm Nansen, after founder and CEO Changpeng Zhao stepped down and pleaded guilty in a deal with the Department of Justice.
According to the reports a number of nations are reportedly looking into possible money laundering, securities law, and tax evasion offenses at the exchange. Because of this uncertainty, some Binance users have decided to remove their assets from the exchange. Binance is rushing to reassure its investors and users as a result of the fund exodus.
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In order to address any compliance issues, the exchange has committed to conducting a comprehensive internal review and cooperating fully with regulatory authorities. Its reputation might suffer significant harm, though, and there are still unanswered concerns about how these developments will affect the larger cryptocurrency market.
A Report by CNBC on Wednesday revealed that Binance will continue to operate but with new ground rules. It stated that the company is required to maintain and enhance its compliance program to ensure its business is in line with U.S. anti-money-laundering standards and also appoint an independent compliance monitor.
“The case against Binance, which was unsealed Tuesday, shows that three criminal charges were brought against the exchange, including conducting an unlicensed money-transmitting business, violating the International Emergency Economic Powers Act, and conspiracy”. It also revealed that Some of Binance rivals may take advantage of the situation, particularly Coinbase, Kraken and OKX.
