Binance: The Billion Dollar Question
By Ben Mcshane | Sportsfile | Getty Images
Lisbon, Portugal – Nov. 1, 2022
Outflows from Binance have amounted to more than $1 billion in the past 24 hours, not including bitcoin. This is according to data from blockchain analysis firm Nansen after founder and CEO Changpeng Zhao stepped down and pleaded guilty Tuesday in a deal with the Department of Justice.
Meanwhile, liquidity has dropped 25% over the same time frame as market makers pull back their positions because they’re obviously scared of what might happen next.
The outflows are significant and close to what happened previously when the exchange and its founder were charged with 13 securities violations by the SEC. It’s like déjà vu all over again for them.
The exchange’s native token, BNB, is down more than 8% in the last 24 hours. And considering that Binance holds about $2.8 billion worth of these tokens according to Nansen…that’s gotta hurt.
But hey! Don’t worry too much about it! I mean sure, there are some major financial issues going on here but at least we still have our sense of humor right?
I mean come on people! We’re talking about a multi-billion dollar company facing massive fines and potential legal action…but let’s just laugh it off!
And why not? After all this drama you’d think we could use a good chuckle or two.
Now where was I? Ah yes—back to business…
Binance agreed to pay $4.3 billion in fines (yes BILLION) so that they can get themselves out of hot water with U.S regulators who weren’t too happy about their sketchy behavior involving anti-money-laundering programs and economic sanctions since apparently playing by those rules isn’t really “their thing.”
Assets of more than $65 billion remain on the platform which means that Binance is likely capitalized enough to withstand a sudden rush of investors away from their platform…or so they hope anyway!
“After everything calms down….there will be no significant impact on most assets,” said Grzegorz Drozdz who thinks he knows stuff because he works at an investment firm called Conotoxia Ltd.
He added “the cryptocurrency that seems to have suffered the most is losing more than nine percent right now.” But don’t feel bad for him! He probably bought low anyways!
Drozdz also mentioned something important sounding like increasing security measures blah blah blah ETF based Bitcoin quotes yada yada long term impacts…whatever dude!
So can Binance survive even after stepping into such deep do-do?”
Well folks….that’s what everyone wants to know!! Can they make it through this ordeal despite all tumultuous situation??
According experts CNBC spoke with said sure why not!? They cited things like complying with DOJ process (like duh), implementing three-year strategy compliance plan (sounds thrilling!), plus amount held within reserves (cha-ching!) …so yeah maybe?!?!
Yesha Yadav said “this fine does not appear aimed at dealing a fatal blow” So take heart people!!
$4.3 billion plea deal huh?? That’s one heckuva price tag for breaking laws isn’t it? Just imagine if you could buy your way outta speeding tickets..right???
Zhao & others were charged violating Bank Secrecy Act failing implement effective anti-money-laundering program , violating U.S economic sanctions ‘in deliberate calculated effort profit without controls required by law’ Not cool guys!!!
U.S Attorney General Merrick Garland says “Using new technology break law doesn’t make you disruptor makes criminal” BOOM!!! Mic drop!!!
Treasury Secretary Janet Yellen says “exchange allowed illicit actors make transactions supporting terrorism illegal narcotics allowing virtual currency trades violated U.S sanctions.” Whoopsie Daisy!!!!
Zhao released personal recognizance bond secured by cash sentencing hearing scheduled February23rd . In other words—that means his fate is basically up-in-the-air until then…
BUT—but—fear NOT my friends!!!! Despite all odds against them—Binance WILL continue operating!!!!
Just under new ground rules though…..they’re required maintain enhance compliance program ensure business aligns w/U.S anti-money laundering standards appointed independent compliance monitor….
Oh boy—isn’t THAT exciting??? Can’t WAIT see how THAT turns out!!!!! 😂😂😂🤣🤣🤣
Some rivals may look take advantage situation particularly Coinbase Kraken OKX…..which sounds like some kinda secret code names for covert ops missions …(but shhhhhh)
Coinbase Kraken currently waging own respective legal battles SEC June agency hit Coinbase lawsuit similar brought against Binance alleging operates unauthorized securities exchange broker clearing agency Monday sued Kraken alleging commingled customer crypto assets creating potential risk loss users……
Vanderbilt’s Yadav said reserves likely scrutiny investors assess go exit company CEO Attempts create strategic transparency since FTX collapse floundered proof limited information divulged public blockchains full-scale audit…..
“There doubt run state internal governance risk management venue known opacity well an impenetrable capital organizational structure whose complexity caused CFTC investigate these organizational interconnections possible avenues engage activities violating applicable regulations”
WOWZA!!! What tangled web indeed!!!
In conclusion dear readers……we shall wait see fate unfolds….will this giant survive???? Only time tell—-stay tuned folks!!!!