The crypto world was rocked yesterday by news of Binance’s legal settlement and the resignation of its founder and former CEO, Changpeng Zhao. This development triggered a widespread decline in crypto asset prices, significantly affecting the market.
The turbulence has particularly impacted investors using high leverage, leading to a surge in liquidations. Over $200 million worth of positions were liquidated within a day due to this increased market volatility.
Adding to the upheaval, Changpeng Zhao admitted to shortcomings in implementing effective anti-money laundering measures at Binance, which also contributed to market instability. This admission coincided with a sharp drop in the price of Binance Coin (BNB), which plummeted from a high of $275 to a 20-day low of $222, losing about 20% of its value in less than 24 hours.
While most assets have recovered slightly from their daily lows, the heightened volatility continues. This scenario has been particularly harsh for traders with excessive leverage, leading to the liquidation of nearly 100,000 positions, totaling around $230 million over 24 hours.