$1.3 billion in user funds withdrawn from Binance following the US Government indictment

Following the indictment by the US government, Binance saw a staggering $1.3 billion withdrawal of user funds.

The surge in withdrawals coincides with the announcement that Changpeng “CZ” Zhao will step down as CEO as part of a $4 billion settlement with the US Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC). It is important to note that the Securities and Exchange Commission (SEC) is not a party to this agreement.

According to Wall Street Journal reports, Zhao will admit guilt to anti-money laundering (AML) charges as part of the settlement. The founder is expected to enter a guilty plea in federal court in Seattle on Tuesday afternoon.

As of the publication of this report, no official comments had been provided by Binance, the DOJ, the CFTC, or the SEC.

In the midst of all of this, Changpeng Zhao (CZ) was released from custody thanks to a $175 million bond. The situation is still unfolding, and the crypto community and investors are waiting for more updates and insights.