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Binance, one of the leading cryptocurrency exchanges, is facing significant challenges as its CEO, Changpeng Zhao, steps down and the company agrees to pay a $4 billion fine to US regulators. This development has resulted in a massive outflow of funds from the exchange, with users withdrawing over $1 billion in crypto assets within 24 hours. Despite this, it is important to note that the amount withdrawn represents less than 2% of Binance’s total assets, which amount to $67.688 billion. The situation is reminiscent of what happened to FTX, another crypto exchange, when it faced rumors of being illiquid back in November 2022. However, Binance has a much larger asset reserve compared to FTX at that time. Binance remains the largest crypto exchange globally, with spot volumes exceeding $8.28 billion and commanding the majority of open interest volume with $9.544 billion in the 24-hour period.The native coin of Binance, BNB, has been negatively impacted by the exchange’s troubles. Its price initially dropped by around 15% upon the announcement and has continued to trade at lower levels. Although there has been some recovery, the price is still experiencing significant losses. Despite a surge in trading volume, sellers have dominated the market, causing the price to fall below the 20-day moving average. However, there are signs of stabilization as the price recovered above $230, indicating resistance from bulls. Richard Teng has taken over as the new CEO of Binance, and the market is eagerly awaiting his first actions. Positive news and actions from the new leadership could help restore user confidence in the exchange.