BNB Plummets 10% Amid Binance’s $4.3 Billion Settlement And CEO’s Impending Resignation
November 21 2023 - 8:00PM
NEWSBTC
Binance Coin (BNB), the native token of the Binance cryptocurrency
exchange, has experienced a sharp decline of 10% following reports
that Binance is preparing to settle criminal charges with the US
Department of Justice (DOJ) through a $4.3 billion fine.
Binance CEO To Plead Guilty The Wall Street Journal has disclosed
that Binance CEO Changpeng Zhao (CZ), commonly known as CZ, will
plead guilty to violating criminal anti-money laundering
requirements. Concurrently, Binance will also plead guilty to
a criminal charge related to anti-money laundering violations,
resulting in a significant fine. Furthermore, CZ is expected to
step down as CEO, with Richard Teng being considered as a potential
successor. Changpeng Zhao is scheduled to appear before a federal
court in Seattle to enter his guilty plea. This crucial legal step
can further impact BNB’s price action as investors assess the
implications of CZ’s admission of guilt regarding violating
anti-money laundering requirements. Related Reading: Analyst
Sets $30,000 Floor For Bitcoin, But Can We Forget 2021’s Misfire?
The reported settlement involves Binance pleading guilty to a
criminal charge related to anti-money laundering violations,
leading to a hefty $4.3 billion fine. This substantial sum
encompasses payments to settle civil allegations made by
regulators. These developments occur in an increasingly
stringent regulatory environment in the cryptocurrency industry.
The recent charges brought by the SEC against Kraken further
highlight the regulatory scrutiny faced by industry players.
Additionally, market participants anticipate significant
enforcement actions by the DOJ, which adds to the atmosphere of
uncertainty and apprehension. Will CZ’s Statement Halt BNB
Downtrend? Despite the shocking revelation surrounding
Binance’s leadership and its impact on the crypto community, there
may still be hopes for a potential recovery of Binance Coin and the
overall crypto market as the case reaches its conclusion. With CZ
reaching a settlement with the US Department of Justice (DOJ) and
pleading guilty to criminal charges, the exchange can breathe a
sigh of relief, knowing that regulatory agencies have addressed
their concerns and potential legal action. Related Reading: From
Cool-Off To Takeoff: How XRP’s Current Value Signals An Imminent
Market Triumph Furthermore, this settlement could be seen as a
victory for regulators, particularly in light of the ongoing legal
battles between the US Securities and Exchange Commission (SEC) and
Ripple Labs, which involve the cryptocurrency XRP. A
favorable outcome in these cases could potentially boost confidence
in the broader crypto industry and drive prices higher. Currently,
BNB is trading at $240, showing signs of recovery from its recent
drop, which briefly touched $235 but managed to stay above the
critical support level of $232. In further declines, BNB
bulls will need to hold the support levels at $228, $217, and $214
to prevent the token from dropping below the critical level of
$200. However, suppose Changpeng Zhao and the new Binance CEO can
provide a statement that reassures the community and instills a
sense of calm. In that case, it may bring a renewed positive
sentiment and potentially halt the current downtrend for BNB. The
unfolding of the situation, the next steps for the exchange, and
CZ’s fate remain to be seen. The community and market participants
eagerly await further developments and announcements shaping the
future of Binance and its native token, BNB. Featured image from
Shutterstock, chart from TradingView.com
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