Binance Settlement and Zhao’s Departure Sends Shockwaves through Crypto
The recent news about Binance’s settlement with the US Department of Justice and the departure of Changpeng Zhao as CEO sent shockwaves through the crypto industry and led to price declines for almost all assets. The enhanced volatility has harmed over-leveraged investors, with the total value of liquidated positions soaring to well over $200 million on a daily scale.
Binance Settlement and Zhao’s Departure
On Monday, there were rumors that Binance was about to reach a settlement deal with the US Department of Justice. Although the speculations contained a massive amount of $4 billion, the news actually resulted in price increases for most crypto assets, especially BNB, which jumped to a 5-month peak above $270. The deal materialized when the DOJ announced settling the charges against the crypto behemoth for $4.3 billion, closing all investigations, the first of which began five years ago.
Price Drops for BNB and the Rest of the Market
Furthermore, Binance’s founder, Changpeng Zhao, stepped down as CEO and pled guilty to failing to implement a strong anti-money laundering program within his company. This actual development led to price drops for BNB and the rest of the market. Binance Coin slumped from its peak of $275 to a 20-day low of $222, thus losing about 20% of value in less than a day. The rest of the crypto market turned red as well, with bitcoin dumping from $37,500 to $35,500 and ETH losing the $2,000 mark. Most assets have bounced off from their daily lows, which has increased the volatility levels. Somewhat expectedly, this meant pain for over-leveraged traders, with nearly 100,000 liquidated. The total value of the wrecked positions stands at $230 million on a 24-hour scale.
Hot Take: Crypto Industry Reacts to Binance Settlement and Zhao’s Departure
The recent developments surrounding Binance and its founder, Changpeng Zhao, have caused significant turbulence in the crypto market. The settlement with the US Department of Justice and Zhao’s departure as CEO have led to price declines for BNB and other assets, impacting over-leveraged investors and increasing volatility in the market as a whole. The industry is closely monitoring the aftermath of these events and the potential long-term implications for Binance and the broader crypto ecosystem.
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