The recent events at Binance, one of the leading cryptocurrency exchanges, have caused significant turmoil in the crypto world. The departure of CEO Changpeng “CZ” Zhao and legal issues, including a $4.3 billion settlement with the U.S. Department of Justice, have led to a massive liquidation of $175 million in crypto long positions.
The news of CZ’s resignation and the legal developments has shocked the crypto community, leading to market turbulence. According to CoinGlass, $175 million worth of crypto longs were liquidated in just 24 hours, affecting 92,742 traders. In contrast, $51 million in short positions were also purged.
The turmoil at Binance has not only impacted market positions but also the flow of assets within the exchange. Data from DefiLlama shows a significant drop in asset inflows to Binance, indicating a cautious approach by traders amidst the ongoing uncertainty.
Binance’s native token, BNB, also experienced volatility, rallying to a five-month high before dropping following the news of the DoJ settlement. This erratic movement demonstrates the market’s sensitivity to the unfolding events at Binance.