Binance, the world’s largest %Cryptocurrency exchange, has seen $1 billion U.S. of net outflows over the past 24 hours after chief executive officer (CEO) Changpeng Zhao pled guilty to U.S. securities violations and resigned from the company.
Additionally, CZ has agreed to pay $4.3 billion U.S. in fines as part of a settlement with the U.S. government that had charged him with money laundering and other market offenses.
In a written statement, Binance sought to reassure investors that it is not in danger of seeing a mass exodus of customers that could lead to a bank run at the crypto exchange.
Binance said that it remains solvent and will continue operating as usual, except that it plans to make a “complete exit” from the U.S market.
Industry data shows that Binance continues to manage more than $67 billion U.S. worth of cryptocurrencies and stablecoins.
CZ had been charged by U.S. authorities with money laundering, conspiracy to conduct an unlicensed money transmitting business, and U.S. sanctions violations.
Richard Teng, former head of regional markets at Binance, has been named the crypto exchange’s new CEO.
The settlement agreement reached with prosecutors subjects Binance to increased scrutiny for five years through a third-party monitor.
CZ is a Chinese born Canadian citizen. He was raised in Vancouver, British Columbia and holds a Bachelor of Science degree from McGill University in Montreal.
The Bloomberg Billionaires Index estimates CZ’s current net worth at approximately $23 billion U.S.
Binance is a privately held company. Its stock does not trade on a public exchange.