Binance consumers withdraw more than $1 billion from the exchange after the CEO resigns and pleads guilty

According to statistics from blockchain analysis firm , outflows from Binance have totaled more than $1 billion in the last 24 hours, excluding bitcoin, after founder and CEO Changpeng Zhao stepped down and pleaded guilty in an agreement with the Department of Justice on Tuesday.

According to data source Kaiko, liquidity has declined 25% during the same time period as market makers reduce their positions.

The outflows are considerable and comparable to what occurred previously when the SEC accused the exchange and its founder with 13 securities offenses.

Binance is still the world’s largest cryptocurrency exchange, processing billions of dollars in trade volume each year.

Binance agreed to pay the US authorities $4.3 billion in fines. The plea agreements bring an end to a multi-year probe into the cryptocurrency exchange.

According to Nansen, more than $65 billion in assets remain on the platform, indicating that Binance is likely financed enough to withstand a sudden outflow of investors. While withdrawals are increasing, there has been no «mass exodus» of funds from the exchange.

Drozdz said that the fact that Binance’s disagreement with regulators is over and the business has vowed to strengthen security measures may be a net benefit for the industry.