Crypto news: after the announcement of the agreement between the DOJ and Binance, the value of BNB coin showed a sudden rise followed by a subsequent decline.
Specifically, the BNB token experienced the most significant market fluctuation of the day yesterday, highlighted by a rally marked by high volumes, leading its price to touch a high of $271.90, the highest in five months. Let’s see all the details below.
Summary
The impact of the DOJ settlement: the unpredictable price changes of BNB coin in the crypto market
As anticipated, the rise in the price of BNB coin (BNB) peaked at $271.90, marking a period of five-month highs.Â
All this comes at the same time as news of the U.S. Department of Justice’s plan to announce a $4.3 billion settlement with Binance, ending its legal case.
The Wall Street Journal also reported that Changpeng “CZ” Zhao, founder of Binance, had reportedly agreed to step down as CEO of the cryptocurrency exchange.
Then, BNB’s intraday fervor, which reached five-month highs, was quickly reversed when more information emerged about the DOJ’s deal with Binance.
Although the exact details of the settlement are still pending until the Nov. 21 press conference, crypto market participants seem to interpret the end of Binance’s legal dispute with the Commodity Futures Trading Commission, the U.S. Securities and Exchange Commission, and the Department of Justice as a positive development, with possible bullish impacts on the cryptocurrency market.
Indeed, historically, crypto markets react negatively to enforcement actions and the prospect of new regulations.
However, Coinglass data indicate that BNB volumes, open interest, and options volume have been on the rise over the past 24 hours.
Despite the peak at $271.90 reached ier, BNB’s price has retraced significantly, suggesting the persistence of the news buying and selling strategy in the cryptocurrency sector.
Changpeng “CZ” Zhao accepts resignation and pleads guilty in 4.3 billion settlement with US DOJ
Recently, Binance CEO Changpeng “CZ” Zhao agreed to resign from his position at the world’s largest cryptocurrency exchange, admitting his guilt for violating U.S. criminal anti-money laundering requirements as part of a settlement with the U.S. Department of Justice.
In addition, Zhao is preparing to enter his guilty plea before a federal court in Seattle and plans to pay a significant fine to resolve the DOJ charges.
As anticipated, the Wall Street Journal report reveals that CZ-led Binance will face a $4.3 billion fine, simultaneously resolving disputes with the DOJ and the Commodity Futures Trading Commission.
However, the settlement does not affect the pending lawsuit with the U.S. Securities and Exchange Commission (SEC), focusing on allegations of investor protection violations.
The outcome of Zhao’s settlement with the DOJ is reminiscent of the earlier case against BitMEX executives, where the former CEO, Arthur Hayes, pleaded guilty and received a two-year probation sentence.
While Zhao’s agreement allows him to retain his majority stake in Binance, it also prevents him from holding future executive roles in the company.
