Binance, the top crypto exchange, has achieved a monumental milestone by surpassing $100 billion in user funds. This achievement is the first since its implementation of proof-of-reserve disclosures seventeen months ago.
Bitcoin dominates the asset pool, with over 562 million BTC held by users on the exchange. Binance upholds a coverage ratio of about 103.2%, underscoring its commitment to protecting user funds.
Top cryptocurrencies like USDT, BNB, and Ethereum (ETH) are among the platform’s prominent asset reserves. Shiba Inu (SHIB) also stands out, with users entrusting around $1.9 billion worth of the crypto asset to the platform; this emphasizes the increasing popularity of SHIB.
Regulatory Scrutiny Intensifies
Binance’s surpassing $100 billion in user funds reaffirms its status as a pivotal player in the cryptocurrency industry. With its commitment to transparency, security, and innovation, the exchange continues to attract users worldwide.
Despite its global growth and role in the crypto ecosystem, Binance still faces heightened scrutiny from regulators. Earlier this year, the court approved a plea bargain by the exchange to pay a $4.3 billion fine.
Additionally, the company must ensure compliance through an independent firm for five years. This ongoing regulatory scrutiny and the former CEO’s legal issues underline Binance’s challenges as it strives to maintain its position as a leading cryptocurrency exchange.
CZ Teases Education-Related Project
Former Binance CEO Changpeng Zhao, commonly known as CZ, has teased a new project via social media platform X. However, he swiftly clarified that it wouldn’t involve any new tokens.
Based on the information available, the project is centered around education, although Zhao has not provided further details. However, he assured followers that more information would be forthcoming soon.
This announcement follows Zhao’s recent agreement to step down as CEO of Binance as part of a settlement with the US Justice Department. The settlement, which concluded a lengthy money laundering probe dating back to 2018, required CZ to pay a $50 million fine.
Additionally, Zhao agreed not to have any future involvement with the exchange even though he was the founder. Binance agreed to a larger payment of over $4 billion as part of the settlement. After CZ’s resignation, Richard Teng took over as CEO, ushering the exchange into its new era.
More Troubles For CZ?
Meanwhile, Zhao faces legal challenges, potentially including up to 18 years in prison for alleged money laundering violations. His sentencing, initially scheduled for last month, was postponed to April.
US authorities cited flight risk concerns and denied Zhao leaving the US last November. However, he currently remains free after meeting a $175 million bond.