The Plunge of Binance’s BNB Token
Binance’s BNB token suffered a major price drop following reports that Binance and its CEO, Changpeng Zhao (aka “CZ”), will plead guilty and pay a significant fine to resolve charges from the United States Department of Justice. Within the last hour, BNB has plummeted by 8%, currently priced at around $240, and down 8% for the day according to CoinGecko. This plunge has been the steepest among leading cryptocurrencies within the same time frame.
Simultaneously, Bitcoin and Ethereum, the top two cryptocurrencies, are also experiencing slight price declines, although not as severe as BNB. Bitcoin has decreased by 0.9% in the last hour, settling just below $36,900 after briefly falling to about $36,320. Ethereum, on the other hand, has dropped by 1.6% to $1,973.
Binance and Zhao’s Settlement
As part of the reported settlement, Binance will admit to violating U.S. anti-money laundering regulations and pay a $4.3 billion fine. Additionally, Zhao is expected to step down from his executive position at the exchange. The announcement of the settlement is anticipated to be made by the Department of Justice at 3pm ET. The agreement will reportedly resolve civil charges brought by the CFTC, but it will not include a settlement with the U.S. Securities and Exchange Commission (SEC).
Hot Take
The reports of Binance and Zhao’s impending guilty plea and settlement with the U.S. Department of Justice have led to a significant downfall in the price of BNB. This development also influences the prices of Bitcoin and Ethereum, albeit to a lesser extent. The crypto market is clearly responding to these legal challenges faced by one of the industry’s leading exchanges and its CEO.
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