What are the chances of Binance shutting down now?

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Quote from: Rikafip on November 24, 2023, 10:43:38 AM

Quote from: traderethereum on November 24, 2023, 04:34:23 AM

If Binance is going to shut down in the near future, that would mean Binance would be next after Bittrex shuts down its exchange.

Not necessarily, as you never know which exchange might go down in the meantime. Then again, with the market looking better and only months away from the bitcoin halvening, chances are that more new exchanges will start oppoing out, instead current ones closing.

Yes, we won't know which exchange will be closed next but it seems like the SEC is still looking for its next victim. We can only wait and see what will happen with other exchanges or even projects that still have problems with the SEC.
New exchanges can indeed challenge the SEC but we don't know if they can win against the SEC.

Quote from: Rikafip on November 24, 2023, 10:43:38 AM

Quote from: traderethereum on November 24, 2023, 04:34:23 AM

But hopefully, the replacement of CZ with RT can provide meaningful changes to the crypto market and maybe it can trigger even better market movements. Everything can happen.

Tbh, I don't see that having a new CEO will chance Binance's course dramatically as CZ is still the owner meaning he is the boss, but this time he will operate from behind and won't be so exposed.

CZ is still the owner and even a shareholder. He could even reclaim his position in the future.
Maybe later, there will be revenge from CZ and I agree that she will only act behind the scenes. Maybe he will control it later.

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Quote from: krishnaverma on November 22, 2023, 08:17:28 AM

Binance has been fined with about $4 billion. What is more concerning that their image is hampered now and trust of investors is gone who will stay away from the platform. Can this result in Binance getting shut down anytime soon?

Still haven't found a reason why Binance Exchange will close because of what happened to them and CEO CZ before turning to Richard Teng as the new CEO of Binance.

Getting people to trust not to use Binance as an exchange for trading is difficult even if Binance is having problems. My assumption is that people who use Binance don't really care about this case because they consider CZ's decision to resign as a great choice even though more than 10 million Binance users felt worried when the news hit Binance.

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Although $4 billions is a huge amount I doubt this fine will result in Binance ceasing their operations or completely shutting down their business.
The real question is if this is going to be the only penalty against them and things will stop there!
I believe CZ departure is the best of Binance as a company and it will help reduce the legal pressures against them.

Regardless of how much we may disagree with Binance's policies, it's still a necessary evil especially in the absence of other alternatives.

Rikafip

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Quote from: traderethereum on November 24, 2023, 04:34:23 AM

If Binance is going to shut down in the near future, that would mean Binance would be next after Bittrex shuts down its exchange.

Not necessarily, as you never know which exchange might go down in the meantime. Then again, with the market looking better and only months away from the bitcoin halvening, chances are that more new exchanges will start oppoing out, instead current ones closing.

Quote from: traderethereum on November 24, 2023, 04:34:23 AM

But hopefully, the replacement of CZ with RT can provide meaningful changes to the crypto market and maybe it can trigger even better market movements. Everything can happen.

Tbh, I don't see that having a new CEO will chance Binance's course dramatically as CZ is still the owner meaning he is the boss, but this time he will operate from behind and won't be so exposed.

traderethereum

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If Binance is going to shut down in the near future, that would mean Binance would be next after Bittrex shuts down its exchange. We all want to see what Binance will become under the command of Richard Teng (RT).
Maybe investor confidence has decreased somewhat after CZ's departure, but we also don't know what RT will do.
But if Binance goes bankrupt, it will probably shake up the crypto market and there could be another deep correction.
But hopefully, the replacement of CZ with RT can provide meaningful changes to the crypto market and maybe it can trigger even better market movements. Everything can happen.

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Quote from: krishnaverma on November 22, 2023, 08:17:28 AM

Binance has been fined with about $4 billion. What is more concerning that their image is hampered now and trust of investors is gone who will stay away from the platform. Can this result in Binance getting shut down anytime soon?

Regulatory actions and fines don't necessarily lead to an immediate shutdown. So the chance is low but not impossible. They find ways to comply with new regulations. However, we cannot deny that their reputation has truly been damaged, and it will be difficult for them to attract new customers. If they are unable to recover from these setbacks, they may be forced to close.
We know that the issue is not yet resolved, and it is a developing story. Regulatory scrutiny continues, and there may be further fines or sanctions imposed by regulators that will make it challenging for them to operate profitably. Investors may lose confidence, and maintaining liquidity could become an issue.
Let's not forget that there are new competitors emerging that can comply with regulations. If Binance cannot adapt to the changes in the regulatory landscape, it may indeed have to close its doors.

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Quote from: krishnaverma on November 22, 2023, 08:17:28 AM

Binance has been fined with about $4 billion. What is more concerning that their image is hampered now and trust of investors is gone who will stay away from the platform. Can this result in Binance getting shut down anytime soon?

Still low chance.

Binance itself doesn’t have any violation or whatsoever that involved misuse of user funds. All user funds is still backed 1:1 since the DoJ didn’t mention any of this issue aside from the founder involvement to the crime they accused.

Binance will continue to operate since CZ take the fall so that the exchange will not be affected.

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Quote from: Darker45 on November 23, 2023, 09:11:24 PM

CZ, on the other hand, is also fined $50 million. And he also paid a bail bond of $175 million.

Yeah about the personal fine, it doesn't seem like a significant amount. Btw, does Forbes accurately summarize the wealth of the richest peopleon real time? Once again I checked the forbes page, I was surprised that the numbers were that volatile. CZ's net worth increased by 50%. That additional amount is even enough to cover corporate and personal fines. Wth is this...

Quote

Changpeng Zhao

$15B

Real Time Net Worth
as of 11/24/23

#188 in the world today

https://www.forbes.com/profile/changpeng-zhao/?sh=4d63d9a46277

Darker45

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Quote from: rat03gopoh on November 22, 2023, 11:54:20 PM

Let's highlight CZ's net worth, https://www.forbes.com/profile/changpeng-zhao/?sh=37da17bf6277

Quote

Changpeng Zhao

$10.2B

Real Time Net Worth
as of 11/22/23

#188 in the world today

That's an abundance of wealth to spend the rest of his life in any country. If we talk about ethics, CZ got this wealth from the company he has controlled for 7 years (including profits from the alleged illegal activities). Unless CZ only cares about herself afterwards, then he won't contribute even $1 towards the $4.3b fine.

It's not as if Binance and CZ are different. Despite others having a stake in Binance, CZ and Binance are the same. They're one. So, even if CZ only cares about himself, which might be the case in reality, that means he cares about Binance, his main source of money.

That $4.3 billion fine is not imposed on them as if it's just a huge sum of cash they need to release right away and anybody can contribute to it. It has a breakdown. $1.81 billion of it shall be paid for the next 15 months. The remaining $2.51 billion shall be forfeited from the platform. But that's just for Binance to pay. CZ, on the other hand, is also fined $50 million. And he also paid a bail bond of $175 million.

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I'm doubtful Binance is done for cuz of this. True the fine's huge, but I think they can space out payments. With their yearly profits that scratch should heal up alright. Far as I see, ain't no exchange can touch Binances rep yet, so folks won't ditch em.

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Quote from: CRAIC on November 22, 2023, 02:15:17 PM

Quote from: krishnaverma on November 22, 2023, 08:17:28 AM

Can this result in Binance getting shut down anytime soon?

The main parasite CZ which was laundering moneys has been removed - the exchange will now become even better

That's only one of rge reason for CZ removal. Binance wasn't registered fully as money remittance and they were making billions of dollars for people, cooperate bodies, companies and many highly recognized people and even bad people (according to US) and that's violate the US law. The exchange was also trading without proper requirement of KYC, they allowed free trading untill may 2022 and they think money has been laundered between this pass period, so many other minor and more charges, hence why he didn't have choice but to admit in other to save the company.

Binance isn't going to die because US are not the only country that used the exchange but I believe Binance will soon be avoiding US very soon. They are bad for business, they want to tell me that Coinbase is very clean exchange, there is more like this that might been going on in that exchange but US as usuall will cover up for their own because they don't like CZ and Binance.

rat03gopoh

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Let's highlight CZ's net worth, https://www.forbes.com/profile/changpeng-zhao/?sh=37da17bf6277

Quote

Changpeng Zhao

$10.2B

Real Time Net Worth
as of 11/22/23

#188 in the world today

That's an abundance of wealth to spend the rest of his life in any country. If we talk about ethics, CZ got this wealth from the company he has controlled for 7 years (including profits from the alleged illegal activities). Unless CZ only cares about herself afterwards, then he won't contribute even $1 towards the $4.3b fine.

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I don't have the funds there so if they were to shut down there would be no personal impact, but I'm sure they won't give up and choose to close the exchange after trying to build it for so long with all the funds that have been sacrificed, as long as they are able to pay the fines that must be paid, and their new CEO can run this exchange better than before then they will be fine.
Currently, there is no exchange that can compete with their size, and also because traders still really trust this exchange there is no reason to close it because the business they run is still profitable.

Darker45

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Possibilities are open. Aside from the forfeiture and the fine as well as CZ's resignation, the withdrawal of users from the platform has already ballooned to more than a billion following the deal. This isn't good. Although what CZ has done was sacrifice enough to make sure Binance keeps sailing despite the challenges it faces against no less than the government, there's actually no assurance that it would be successful. Moreover, CZ is free only on bail. The sentencing come February could mean something else.

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Quote from: Plaguedeath on November 22, 2023, 09:09:51 AM

Quote from: https://en.wikipedia.org/wiki/Binance

Revenue US$12 billion (2022)

Assuming they only have $12 Billions, they still have $8 Billions of money.

I don't think Binance will collapse because of this case alone, every people who're interested in crypto are think Binance is the most trusted exchange. Currently there's no yet strong competitor which can change people perspective to think other exchange is better or has a same quality like Binance.

Binance's total assets are $64 Billion according to Defillama sources. https://defillama.com/cex/binance-cex

So with the demands of paying fines totaling $4 billion it is still far from bankruptcy as they have so many secure user assets.

That's what I know, until now there is still no news about bankruptcy because maybe seeing all the total assets owned is so large, but still keeping assets on the exchange is far risky even though many people have hopes for a centralized platform.

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Quote from: krishnaverma on November 22, 2023, 08:17:28 AM

Binance has been fined with about $4 billion. What is more concerning that their image is hampered now and trust of investors is gone who will stay away from the platform. Can this result in Binance getting shut down anytime soon?

I guess then they would first declare bankruptcy and close the business before paying such a fabulous fine. If there is a business closure, it will be caused by future wrong steps (if any).
btw. No matter how much I'm not a supporter of Binance, I still don't like these kinds of revelations about any company.

CRAIC

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Quote from: krishnaverma on November 22, 2023, 08:17:28 AM

Can this result in Binance getting shut down anytime soon?

The main parasite CZ which was laundering moneys has been removed - the exchange will now become even better

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Quote from: krishnaverma on November 22, 2023, 08:17:28 AM

Binance has been fined with about $4 billion. What is more concerning that their image is hampered now and trust of investors is gone who will stay away from the platform. Can this result in Binance getting shut down anytime soon?

Possible but do they have the proof of reserve as what they have tried to campaign before?

If the revenue is still above the fine that they've paid, I guess that it's still fine on their end to pay it and then continue to rake revenues in billions again.

Aside from the revenue, the reserve fund that they have I guess is one thing that they have been boasting for so long. But as a user and someone who's aware of exchanges can fall anytime, you don't keep your funds saved there.

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Quote from: Plaguedeath on November 22, 2023, 09:09:51 AM

Quote from: https://en.wikipedia.org/wiki/Binance

Revenue US$12 billion (2022)

Assuming they only have $12 Billions, they still have $8 Billions of money.

I don't think Binance will collapse because of this case alone, every people who're interested in crypto are think Binance is the most trusted exchange. Currently there's no yet strong competitor which can change people perspective to think other exchange is better or has a same quality like Binance.

yeah, I read online that Binance rakes in an annual revenue of $12 billion, but I'm not sure about its profit margin. I think they settled on the fine; if it was too big, they probably wouldn't have agreed. They could likely handle it. However, this might affect how many people try to cash in or out. Either way, it only hurts CZ and the folks at Binance. I'm not saying it's cool, but it could be the incentive in play.

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Quote from: https://en.wikipedia.org/wiki/Binance

Revenue US$12 billion (2022)

Assuming they only have $12 Billions, they still have $8 Billions of money.

I don't think Binance will collapse because of this case alone, every people who're interested in crypto are think Binance is the most trusted exchange. Currently there's no yet strong competitor which can change people perspective to think other exchange is better or has a same quality like Binance.

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