CZ Binance Steps Down As CEO Resulting in Washing Out $175M in Long Positions

The crypto space is buzzing due to recent events regarding the criminal investigation of Binance by the US Department of Justice (DOJ).With more pressure from the lawsuit came the exit of Binance founder and CEO Changpeng Zhao (CZ) and the appointment of a new CEO.

Also, the DOJ's demand for a $4.3 billion deal with the exchange has escalated some issues for Binance.Subsequently, the market has recorded almost $175 million in liquidation of trades on long positions.

Crypto Markets Record Liquidations Of $175 Million Worth Of Assets As Binance Experiences $1 Billion Dip In Asset Inflows

According to data from a crypto derivatives data provider, CoinGlass, about $175 million of crypto assets in long positions were liquidated within the past 24 hours.Also, the data revealed that up to $51 million worth of assets in short position were liquidated within the same period.

Cumulatively, the crypto market has liquidated more than $226 million worth of digital assets over the past 24 hours. CoinGlass data indicated that about 92,742 traders were involved in the liquidation within the period.

According to the data provider, the ByBit crypto exchange recorded the most remarkable order involving liquidating a $2.35 million BTC/USD pair.

Further, the trend of events impacted the movement of crypto assets in the Binance exchange. Data from a data aggregator, DefiLlama, showed a drop of over $1 billion in asset inflows on the Binance platform within the past 24 hours.

Moreover, the flow of assets in the crypto market reflected that some traders ceased transferring their funds into the exchange within this period.

The entire drama has drastically affected the price of Binance BNB. The token defied the prevailing bearish trend in the overall crypto market on November 21, surging by almost 7%.

However, BNB has lost all its recent gains within 24 hours based on the news of the DOJ settlement deal.As of 10:00 AM EST on November 22, BNB trades as $231.79, indicating a drop of 9.44% in the past 24 hours.

Rollercoaster Turn Of Events For Binance Through Its Case With DOJ

Through its lawsuit with the US DOJ, it has been a rollercoaster outplay for the world's largest crypto exchange, Binance. Notably, the DOJ and the exchange began discussing potential settlement terms regarding the criminal investigation on Binance.

Following the trend of events and demands, Binance's founder and CEO has departed from the firm and his position as the CEO. Part of the deal's conditions between the parties is a $4.3 billion settlement fine against Binance.

Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.

Binance is no longer a baby. It is...

- CZ Binance (@cz_binance) November 21, 2023

Attorney General Merrick Garland disclosed the settlement terms on November 21 in a press conference.

Attorney Garland stated:

Binance prioritized its profits over the safety of the American people. Using new technology to break the law does not make you a disruptor - it makes you a criminal.

Further, CZ would plead guilty to one felony charge in person in a US federal court, though he's not a resident of the country.

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