Binance Blues: With Zhao gone, Teng in, crypto co suffers big outflows after $4bn settlement

Data firm Nansen revealed that investors withdrew approximately $956 million from Binance within the last 24 hours, a development following the resignation of CEO Changpeng Zhao, who pleaded guilty to violating US anti-money laundering laws.

The reported outflows are specific to the Ethereum blockchain, according to Nansen analysts.

Changpeng Zhao, widely known as CZ, stepped down as part of a substantial $4 billion settlement between Binance and US regulatory agencies. 

The sudden resignation of Zhao startled the crypto universe. He was replaced by Richard Teng, who hails from Singapore.

Teng had started as chief executive of Binance’s Singapore business.

According to Zhao,  Teng is a “highly qualified leader with over thirty years of experience in financial services and regulatory services and has amply got what it takes to take the company to the next level.

This resolution comes after prolonged investigations by the Department of Justice and others into anti-money laundering and sanctions violations.

In a statement on X, the platform formerly known as Twitter, Zhao admitted to mistakes and emphasised taking responsibility for the benefit of the community, Binance, and himself.

Binance, in a press statement, acknowledged its shortcomings in compliance controls during its initial launch, stating that the company should have had more robust measures given its rapid growth. 

The significant outflows and leadership changes mark a challenging period for the cryptocurrency exchange.