Binance Coin (BNB) Skyrockets 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 previous day, according to Bloomberg. BNB at the beginning 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- announced token has experienced the largest 24-hour price increase between the 75 largest digital currencies by market cap and is as of now the fourth largest token with a market cap of over $40 billion.
Settlement Speculations and Probable Impact
Regardless of the recent price pump, BNB is still down 61.4% from its record-breaking peak 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 continuation operating in the United States under certain conditions. Bloomberg reported that an notice regarding a probable agreement may be made by the end of the 30 days. Should Binance agree to the settlement, it would be one of the largest penalties ever paid in a criminal digital currency case.
Hot Take
BNB’s recent surge in price comes amid rumors of a multi- Billion dollar legal settlement with the United States Department of Justice. This outlines the capacity impact of legal action on digital currency prices and the whole lot of consequences of regulatory compliance for major players in the cryptocurrency industry.
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