Binance, the largest cryptocurrency exchange by trading volume, is facing a significant setback as it endures over $1 billion of net outflows in the past 24 hours, according to DeFillama CEX’s transparency dashboard. This substantial outflow comes in the wake of yet another top executive leaving the company, further adding to the challenges faced by the crypto trading firm.
The Details of the Outflows
DeFillama’s data reveals that Binance experienced $1.4 billion in net outflows in the last 24 hours. The withdrawn assets predominantly consisted of $878 million in Tether’s USDT stablecoin and $167 million in Bitcoin (BTC). Additionally, other assets like Solana (SOL), Tron (TRX), BUSD, and XRP also witnessed noteworthy outflows during this reporting period. Interestingly, these figures align with a previous CryptoSlate Insight report, which disclosed that around $150 million worth of the top cryptocurrency had recently left Binance, coinciding with the plunge of BTC on the exchange to a year-to-date low of 2.3 million.
The current outflows may seem significant, but they pale in comparison to previous instances. Earlier this year, it was reported that Binance had processed approximately $12 billion in outflows following the collapse of FTX in the previous year. Despite the recent developments, Binance still holds a substantial $57 billion worth of digital assets in its crypto wallets, as indicated by DeFillama’s data.
The departure of Stéphanie Cabossioras, the director of Binance’s French subsidiary, marks another high-profile resignation in the continued exodus of the exchange’s staff. Binance France President David Prinçay confirmed Cabossioras’s exit in an October 19 post on the social media platform X (formerly Twitter). This resignation adds to the growing list of top-level executives who have left Binance this year, including Chief Strategy Officer Patrick Hillmann, Senior Vice President for Compliance Steven Christie, General Counsel Han Ng, and Director of Investigations Matthew Price.
In addition to the internal challenges, Binance continues to face regulatory issues in various jurisdictions. A Brazilian congressional committee has recently called for the indictment of Binance CEO Changpeng Zhao and three other company executives, accusing them of engaging in fraudulent management, unauthorized offering or trading of securities, and operating a financial institution without authorization. Meanwhile, in the United States, the cryptocurrency exchange is battling legal actions from two regulatory authorities: the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Both agencies allege that Binance has violated federal laws with its operations.
The combination of executive departures, substantial outflows, and ongoing regulatory battles poses a significant challenge to the future of Binance. The exodus of top-level talent raises concerns about the stability and direction of the exchange. The outflows signal a loss of confidence from investors, potentially leading to further market implications. Binance must navigate these turbulent waters and address regulatory concerns to restore trust and secure its position as a leading cryptocurrency exchange in the long term.