Binance, one of the world’s leading cryptocurrency exchanges, is facing significant challenges as its founder and former CEO, Changpeng Zhao (CZ), steps down and $200 million exits its reserves. CZ recently revealed that he has reached a plea deal with U.S. authorities after facing federal charges. This revelation has raised concerns among investors, leading to a significant outflow of funds from Binance to perceived rival exchange Coinbase. As a result, Binance’s reserves have declined by $200 million, while Coinbase’s reserves have surged by 12,000 BTC ($450 million). Market experts believe that Binance’s credibility is being questioned, and its value may continue to decline. Greta Yuan, the head of research at VDX, a Hong Kong-based digital asset platform, suggests that ongoing legal challenges and the perception of regulatory alignment could further hinder Binance’s progress. Many market observers predict that Coinbase could replace Binance as the most reliable exchange in the long term. Despite settling with authorities, CZ still faces scrutiny for his role in Binance’s losses. The U.S. Securities and Exchange Commission (SEC) has accused Binance of propping up the value of the BNB token using its Bitcoin reserves, a claim CZ has repeatedly denied. Since CZ’s resignation, withdrawals from Binance have reached $1 billion, leading to a depletion of market liquidity by over 20%. Prosecutors are calling for sanctions against CZ, citing his significant assets and ties to the UAE as reasons for him to remain in the United States until his sentencing in 2024.