$225 million in liquidations as Binance faces turmoil with CEO exit

In a stunning turn of events, the cryptocurrency market witnessed a seismic shake-up, marked by the liquidation of over $225 million worth of positions within a 24-hour timeframe. The upheaval coincided with the announcement of Changpeng Zhao’s departure from the role of CEO at Binance, the world’s largest cryptocurrency exchange.

As the leader of Binance Changpeng Zhao, commonly known as CZ, opted to step down from his position, revealing that the decision followed a legal settlement. In a candid tweet, CZ expressed the emotional difficulty of the choice but emphasized its necessity for the community, the exchange, and himself. This unexpected leadership shift introduces a layer of uncertainty to the cryptocurrency ecosystem.

$180M in long positions liquidated in Binance

Coinglass data disclosed that a substantial portion of the liquidations, exceeding $180 million, originated from traders with long positions – those anticipating price rises. Binance emerged as the epicenter of this financial turbulence, with approximately $98 million in trades liquidated on the platform alone. 

Bitcoin and Ethereum bore the brunt of the impact, facing $50 million and $20 million in long liquidations, respectively. Even Binance’s native token, BNB, and the meme-famed Dogecoin were not immune, witnessing significant losses.

Binance’s withdrawal surge: $566.8M moved off

Concurrently, Binance recorded a remarkable withdrawal surge, with a staggering $566.8 million being moved off the platform, according to DefiLlama’s reports. This mass exodus prompts questions about investor confidence and the potential ramifications of CZ’s resignation on Binance’s user base. 

The sheer magnitude of the withdrawal underscores the broader impact of leadership changes on one of the most influential players in the cryptocurrency exchange arena.

Beyond the broader market impact, specific cryptocurrencies faced notable losses, with Dogecoin, a favorite among meme-based investors, seeing over $4.77 million in long positions evaporate within the last 24 hours. 

The aftermath of CZ’s resignation and the subsequent legal settlement raises questions about the resilience of the market and the potential repercussions for Binance’s reputation.