Thousands of Traders Liquidated as Binance and Former CEO Plead Guilty
Following the news that Binance, the world’s largest crypto exchange, and its former CEO Changpeng Zhao (CZ) pleaded guilty to violating US laws, thousands of traders were liquidated. The US Department of Justice (DOJ) announced that Binance admitted to engaging in anti-money laundering, unlicensed money transmitting, and sanctions violations. Additionally, former CEO Changpeng Zhao acknowledged his failure to maintain an effective anti-money laundering program.
Market Impact: Massive Liquidations
The announcement of the multi-billion-dollar settlement sent shockwaves through the crypto markets. Within 24 hours, nearly 40,000 traders were liquidated, resulting in losses totaling $102.04 million. Bitcoin experienced over $32.37 million in contract liquidations, dropping to a 24-hour low of $36,292 before recovering to $37,334 at the time of writing. Ethereum saw $23.31 million in futures contracts liquidations, while BNB witnessed $1.22 million in liquidations.
Crypto Prices After the News
Bitcoin is currently trading at $37,334, Ethereum at $2,062, and BNB at $237.35.
Hot Take: Impact of Binance’s Guilty Plea
The guilty plea by Binance and its former CEO has led to significant repercussions in the crypto market. Traders faced liquidations amounting to over $102 million as the news broke. This case serves as a reminder of the importance of regulatory compliance within the crypto industry. The fallout from this event may have a lasting impact on Binance’s reputation and its position as a leading exchange. It also highlights the need for greater transparency and oversight in the cryptocurrency space to ensure investor protection and market integrity.
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