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Binance under pressure as assets devalued by $1 billion following settlement with the US Department of Justice

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Binance under pressure as assets devalued by $1 billion following settlement with the US Department of Justice

After the bankruptcy of FTX last year, Binance's assets depreciated by $14.8 billion in a single month, a decrease of approximately 21.2%. Since reaching a settlement with the US Department of Justice, Binance has reduced its penalties by around $1 billion.

Binance founder Zhao Changpeng agreed to resign, plea bargain, and pay a $4.3 billion fine.

Binance Begins to Experience Net Outflows in the Early Morning

The data analysis firm Nansen immediately began observing the net outflow of assets from Binance and Binance US after the incident.

Between 01:30 and 02:30 in the early morning of the 22nd, the net outflow of assets on the Ethereum chain from Binance had increased from $10,000 to $45 million.

Net Outflows from Binance and Binance US

Binance's Asset Value Decreases by $1 Billion

Nansen pointed out that following the news of Binance's admission of guilt, by 7 a.m. on the 22nd, Binance's assets had decreased by over $1 billion.

However, Nansen emphasized that the $1 billion devaluation came from "price drops" and "net outflows," and Binance still controls $64.6 billion in assets. This is not the first time Binance has dealt with large-scale fund outflow issues.

As of the deadline, Binance's asset value had even increased by another $200 million from 7 a.m.

Binance's Net Assets

The current distribution of Binance's assets is as follows:

  • USDT: 29.25%

  • BTC: 28.73%

  • ETH: 9.96%

  • TUSD: 4.61%

  • BNB: 4.35%

Binance Experienced a $14.8 Billion Devaluation in a Single Month Last Year

Following FTX's bankruptcy in November last year, user FUD sentiment shifted to Binance. At that time, Binance's reserve assets included Bitcoin, Ethereum, Tron, BNB Chain, and other blockchains, which were valued at $69.5 billion over a month ago, but due to a large amount of withdrawals and price fluctuations, it dropped to $54.7 billion in a single month.

This represents a decrease of approximately $14.8 billion from a month ago, a decline of about 21.2%. The devaluation on the books is not entirely due to asset outflows, but also due to the decline in cryptocurrency prices.

Nansen: Binance's Reserve Assets Decreased by Billions in a Single Month, with a Decline of Over 20%