Record amount of USDT outflow from Binance amid legal hurdles with CZ
In the recent past few days, the Binance crypto exchange faced a huge exodus of USDT stablecoin from the platform. Experts raised alarm over this situation.
Binance has been a top-ranked crypto exchange for several years because of its better crypto business strategy. Under the leadership of Changpeng Zhao (CZ), Binance beats all the competition. The current 24-hour spot crypto trade volume of this exchange is $5.26 billion, more than 5 times over any other big crypto exchange.
As we know, Binance Exchange decided to settle with the US authorities over several law violations and agreed to pay a nearly $4.3 billion fine.
Alongside this settlement, Binance Co-founder CZ resigned from the CEO role and is ready to face 18 months of prison punishment in 2024.
Some latest reports noted that the US authorities don’t want CZ to go outside the US jurisdiction because they are in fear that CZ might not come back and in that situation, it will not be possible to bring back CZ from non-US treaty jurisdiction. However, so far CZ has shown his supportive will and never taken any action against US authorities’ demands, so he will get full privilege for such good behaviour from the US court judges.
Amid these legal hurdles, the Binance exchange is facing huge FUD challenges. The exchange saw a record $100 million outflow of USDT stablecoin from the platform.
Some reports suggested that no more funds outflow should take place otherwise it will act as a big catalyst to create high degree fear among the retail customers.
Some on-chain investigators noted that daily funds outflow from the Binance exchange increased continuously over other crypto exchanges and this is showing the panic level among the Binance customers amid these legal hurdles for this exchange.
A week ago, the trade price of Binance exchange’s native Cryptocurrency BNB was showing significant positive sentiments but the trade price as well as trade volume plunged significantly following this bad news.
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