According to Binance’s most recent proof of reserves report, the exchange’s regulatory problems with US authorities coincided with a notable drop in its Bitcoin balance of over 23,000 BTC in November, or roughly 4%.
Data from Binance’s website indicates that at the start of November, its customers had a total balance of 584,659 BTC. But the balance had dropped to 561,003 BTC by the beginning of December. It suggests that some assets were removed during the platform’s regulatory challenges.
Larger holders of BTC saw considerable outflows from the platform, while retail users accounted for most incoming funds. DeFillama’s data dashboard also showed that between November 1 and December 1, Binance experienced outflows of more than $2 billion.
This decrease in Binance’s Bitcoin holdings happened as a result of the platform’s resolution of a settlement that exceeded $4 billion with US authorities regarding matters about numerous infractions of various financial laws.
Changpeng “CZ” Zhao, the exchange’s founder, also resigned as CEO after entering a guilty plea to money laundering charges.