BNB increased by 6% following the $4 billion fine demanded in exchange for the abandonment of investigations against Binance. It didn’t take long for the price of Binance’s native crypto to plunge again. A consequence of the resignation of Binance boss Changpeng Zhao.
Binance’s native crypto lost more than 8% of its value in 24 hours!
BNB, Binance’s native crypto, has seen a significant decline over the past few hours. The valuation of the asset has fallen. A price decrease that seems closely linked to recent developments involving Changpeng Zhao (CZ), the boss of Binance, and the United States Department of Justice (DOJ).
As a reminder, the DOJ had demanded an astronomical sum of $4 billion from the crypto company. This, in order to abandon open investigations against Binance for fraud, sanctions violations and money laundering.
While speculation was active on the relevance or not for Binance to accept such a market, thunderbolt! The company agreed to enter into the deal. In this context, it would have to pay the fine required by the DOJ.
In the process, Changpeng Zhao (CZ) indicated that he was ready to plead guilty to the suspicions against him. This, while agreeing to resign from his position as CEO of Binance, the largest crypto exchange platform on the market. All this affected the price of BNB which is currently trading around $235, down 9.74% over the last 24 hours.
A downward movement that splashes other major cryptos
These developments in the legal case of Binance and its CEO have not only affected the company’s native crypto. Other leading cryptos have seen their valuations decline, albeit slightly.
Thus, bitcoin (BTC) recorded a drop in its price. The flagship crypto fell 1.91% over the past 24 hours, hitting just under $36,600. This, after briefly dropping to $36,320 in the first hours of the information disclosure.
The dynamic is almost similar for Ethereum. In the first hours following the revelations, its price plunged 1.6%. But the crypto’s valuation has recovered substantially to around $2,023, up 0.92% over the past hour. Overall, the agreement involving Binance and CZ, which should put an end to the prosecution brought by the CFTC, caused an earthquake in the crypto market. The latter eagerly awaits further details about this development which marks a turning point in the regulatory efforts of crypto exchanges.
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