Binance-induced market rout wipes more than $200M from crypto traders Binance-induced market rout wipes more than $200M from crypto traders
Binance agreed to a $4 billion settlement with the U.S. authorities.
2 min read
Updated: Nov. 22, 2023 at 9:55 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Events of the last 24 hours involving crypto exchange Binance and several U.S. federal agencies, including the Commodity Futures Trading Commission (CFTC) and the Department of Justice, wiped over $200 million from crypto traders who held positions on the market.
CryptoSlate’s data showed that the total market cap of digital assets declined by 2.04% to $1.38 trillion amid these developments.
Over $200M in the last 24 hours
The crypto market saw $226.88 million liquidated in the past 24 hours, with nearly 93,000 traders affected.
Data from Coinglass showed that long traders lost $175.55 million, with Bitcoin and Ethereum accounting for $69.02 million of these losses.
Short traders experienced $51.31 million in liquidations. The top two digital assets accounted for over 50% of these losses.
Additionally, traders who held positions in Solana lost more than $10 million, while those in BNB lost over $6 million. Other assets such as Dogecoin, Chainlink, XRP, and Litecoin experienced less than $3 million in liquidations, respectively.
Across exchanges, most of the liquidations occurred on Binance, OKX, and ByBit. These three exchanges accounted for nearly 90% of the overall liquidations, with 78% being long positions. Other exchanges like Huobi, Deribit, and Bitmex also recorded a sizeable amount of the total liquidations.
The most significant liquidation occurred on Bybit– BTCUSD valued at $2.35 million.
Binance issues rekt market
Crypto analysts have attributed the market drawdown to Binance’s more than $4 billion settlement with the U.S. authorities and the subsequent resignation of its founder Changpeng ‘CZ’ Zhao as CEO after pleading guilty to money laundering charges.
On Nov. 21, several U.S. federal agencies, including the DOJ and CFTC, detailed how Binance violated multiple finance-related laws. These violations stemmed from the platform’s failure to prevent transactions involving sanctioned users and individuals in restricted regions.
In response, Binance pled guilty to the charges and issued a statement acknowledging its shortcomings. The firm agreed to pay over $4 billion in fines, retain an appointed monitor for three years, and commit to enhancing compliance measures.
Additionally, it appointed Richard Teng, its former Global Head of Regional Markets, as the new CEO.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,337.53
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Solana
$188.416
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
XRP
$2.16676
The XRP Ledger is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
Chainlink
$22.8281
Chainlink is a decentralized oracle network that connects smart contracts on the blockchain to real-world data.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
OKX
OKX is a world-leading digital asset exchange, providing advanced financial services to global traders by using blockchain technology.
Bybit
Bybit is a cryptocurrency derivative trading platform established in March 2018 and registered in the BVI.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.