Binance Coin (BNB) Soars 7% Amid $4 Billion Settlement Rumors
Amid reports that the United States Department of Justice is considering a $4 billion settlement with Binance to resolve its investigation, Binance Coin (BNB) has seen a 7% rise in the last 24 hours, according to Bloomberg. BNB initially dropped to $252 but then spiked to $266, its highest price since June 7, after the Securities and Exchange Commission (SEC) sued Binance and CEO Changpeng “CZ” Zhao for alleged securities law violations.
The Binance-issued token has experienced the largest 24-hour price increase among the 75 largest cryptocurrencies by market cap and is currently the fourth largest token with a market cap of over $40 billion.
Settlement Speculations and Potential Impact
Despite the recent price pump, BNB is still down 61.4% from its all-time high of $686 in May 2021 but has gained 6.5% year-to-date. One possible settlement scenario involves Binance paying the 10-figure fine and being permitted to continue operating in the U.S. under certain conditions. Bloomberg reported that an announcement regarding a potential agreement could be made by the end of the month. Should Binance agree to the settlement, it would be one of the largest penalties ever paid in a criminal cryptocurrency case.
Hot Take
BNB’s recent surge in price comes amid rumors of a multi-billion dollar legal settlement with the U.S. Department of Justice. This highlights the potential impact of legal action on cryptocurrency prices and the significant consequences of regulatory compliance for major players in the crypto industry.
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