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After the guilty plea of the cryptocurrency exchange Binance and its former CEO Changpeng Zhao to federal charges in the United States, Binance’s Bitcoin reserves have been reduced by $200 million. The CEO has paid his bond, but prosecutors are seeking to keep him in the US until sentencing. Recent on-chain data collected by CryptoQuant shows that Bitcoin is being transferred from Binance to Coinbase. Coinbase’s reserves have decreased by 5,000 BTC, while Binance’s reserves have grown by approximately 12,000 BTC. Analysts believe that this movement is driven by individual investors pulling their money out of Binance due to legal concerns. Retail investors are shifting their funds to compliant or licensed exchanges, causing Binance’s Bitcoin reserves to decrease. Greta Yuan, the head of research at VDX, notes that lingering apprehension exists in the market due to Binance’s legal challenges, and she expects users to shift their funds to reassurance-seeking exchanges. The US Securities and Exchange Commission (SEC) and cryptocurrency commentators claim that Binance has previously used its Bitcoin reserves to support the value of its own token, BNB. Binance and CZ strongly deny these allegations. Nansen, a blockchain company, reports that Binance experienced over $1 billion in withdrawals in a single day after Zhao’s resignation and guilty plea. Market liquidity also dropped by 25% as market makers reduced their positions. The settlement between Binance and the DOJ amounts to $4.3 billion, including a $1.8 billion fine and a $2.5 billion forfeiture. BNB’s value declined by 14% following the announcement of the settlement and CZ’s resignation. The value currently stands at $233, representing a 20% decrease compared to the previous year. US prosecutors are seeking to detain Zhao within the country instead of allowing him to return to his residence in Dubai until his sentencing in February. Due to his involvement in the failure to implement proper anti-money laundering measures, the former Binance CEO could face up to 18 months in prison.