What's next for Binance after DOJ settlement, departure of Changpeng Zhao

▪︎Binance has seen outflows amounting to more than $1 billion in the past 24 hours, not including bitcoin, according to data from blockchain analysis firm Nansen.

▪︎Founder and CEO Changpeng Zhao and others were charged with violating the Bank Secrecy Act by failing to implement an effective anti-money-laundering program and for willfully violating U.S. economic sanctions.

▪︎Binance agreed to forfeit $2.5 billion to the government and pay a fine of $1.8 billion — a combined $4.3 billion — in "one of the largest penalties we have ever obtained," according to U.S. Attorney General Merrick Garland.

Binance agreed to pay $4.3 billion in fines to the U.S. government. The plea deals end a yearslong investigation into the crypto exchange.

Assets of more than $65 billion remain on the platform, according to Nansen, meaning that Binance is likely capitalized enough to withstand a sudden rush of investors away from the platform. And while withdrawals are on the up, there has not yet been a "mass exodus" of funds from the exchange.

Binance to continue

Binance will continue to operate but with new ground rules. The company is required to maintain and enhance its compliance program to ensure its business is in line with U.S. anti-money-laundering standards. The company is required to appoint an independent compliance monitor.

The case against Binance, which was unsealed Tuesday, shows that three criminal charges were brought against the exchange, including conducting an unlicensed money-transmitting business, violating the International Emergency Economic Powers Act, and conspiracy.

Some of its rivals may look to take advantage of the situation, particularly Coinbase, Kraken, and OKX.

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