Bitcoin and Ethereum Trade Sideways Amid Binance Controversy
Bitcoin and Ethereum were mostly trading sideways on Wednesday after news that Binance’s boss stepped down from the world’s largest crypto exchange and pleaded guilty to anti-money laundering violations sent the BNB token plummeting.
According to CoinGecko data, Bitcoin was trading for $36,609—a drop of 2% in the past day. Over the past seven days, it’s up 0.3%. Meanwhile, Ethereum, the second-biggest digital asset, was up by more than 3%, trading at $2,034.
However, Binance’s BNB, the fourth biggest digital asset and the utility token for Binance’s exchange, was continuing to drop rapidly on Wednesday morning Eastern Time, dropping over 11% to $231 per token.
Yesterday, Binance CEO Changpeng Zhao agreed to step down from his role at the company as part of a settlement with the U.S. Department of Justice. Traders are selling their BNB holdings, with approximately $3.3 billion worth of BNB changing hands in the past 24 hours.
There’s a very short list of times BNB volume has been higher, including during the 2021 bull market, after TerraUSD collapsed in May 2022, and the day Binance announced it had a tentative agreement to acquire FTX before calling the deal off. FTX filed for bankruptcy days later.
Other major coins and tokens such as Avalanche, XRP, and Dogecoin all dipped in price, with AVAX suffering the most, dropping 9% in the past day. Uniswap’s UNI token surged in price, jumping 12% in 24 hours to $5.66.
Binance Enters Settlement with U.S. Department of Justice
The U.S. Department of Justice stated that Binance didn’t have sufficient anti-money laundering and Know Your Customer controls in place, allowing the platform to be used by terrorists, cybercriminals, and child abusers. Binance agreed to pay a $4 billion settlement and exit the American market, with Zhao pleading guilty to failing to maintain an effective anti-money laundering program.
Overall, the crypto market experienced a major shake-up following the news of Binance’s settlement and the subsequent drop in BNB’s value.
Hot Take: Binance Controversy and Market Impact
The controversy surrounding Binance and the subsequent plea deal by CEO Changpeng Zhao has sent shockwaves through the cryptocurrency market. The impact was immediate, with BNB plummeting and other major coins and tokens also experiencing price dips as traders reacted to the news. The settlement with the U.S. Department of Justice has significant implications for Binance and the broader crypto industry, creating uncertainty and volatility in the market.
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