In the wake of Binance’s $4 billion settlement with U.S. authorities last week, crypto exchange rivals Coinbase and Bybit have emerged as the main beneficiaries. Despite registering over $1 billion in outflows during the aftermath of the settlement.
Binance has not shown signs of a dramatic decline in liquidity, however, with the exchange’s market depth rising post-settlement, according to Kaiko research analyst Riyad Carey. U.S. authorities, including the Department of Justice.
Department of the Treasury and the Commodity Futures Trading Commission, settled with Binance last week, concluding a criminal investigation into allegations of money laundering and sanctions violations and marking one of the largest corporate settlements in U.S. history.
The settlement involved $4.3 billion in penalties and included criminal charges against former CEO Changpeng Zhao, who stepped down as part of a plea deal. Coinbase was one beneficiary, at least in terms of its share price. Coinbase’s stock was already performing well in November, with the Binance settlement adding fuel to the fire, Carey said, as COIN surged by over 75% for the month.