Behind the Fall of Major Crypto Players
FTX’s former CEO Sam Bankman-Fried and Binance’s CEO Changpeng ‘CZ’ Zhao were held accountable following criminal charges facing them in the U.S.
What’s next for crypto after their fall? Will a new phase emerge, and how will it look?
DeFiance Capital founder Arthur Cheong expressed bullish feelings following Binance’s resolution of its legal issues with the U.S. Department of Justice.
Mike Novogratz of Galaxy Digital Holdings also considered a settlement with U.S. regulators to be a positive development for the industry.
U.S. Authorities’ View of Binance
The U.S. Department of Justice’s long-expected prosecution of Binance found the exchange guilty of deliberately profiting from the U.S. market without adhering to U.S. law requirements.
Traditional Finance Takeover?
Speculation over the possibility that traditional financial institutions could take over the crypto space intensified following some analysts at JPMorgan viewing Binance’s settlement with the U.S. authorities as positive for the entire industry.
Binance’s Future
With CZ stepping down, the new CEO is Richard Teng. Whether he will continue to wield much influence over the company is uncertain, but with a billion dollars in outflows following the news of his departure, it looks like a tough road ahead for Binance.
Binance expressed hope for the future, saying, “we are confident that Binance will emerge as a stronger company as we lay the foundation for the next 50 years.”
Hot Take: Is This the End of the “Wild West” in Crypto?
With high-profile crypto figures being held accountable for their actions and a shift toward regulatory compliance, some believe this marks the end of the “Wild West” era of cryptocurrency, perhaps opening the door for traditional finance institutions to come to the fore.
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