Binance Coin (BNB) has experienced a significant drop in price, falling by 8.39% in just one hour and currently trading at $244. The sudden crash comes after the resignation of Binance CEO, Changpeng Zhao (CZ), and the announcement of a $4.3 billion settlement between Binance and the US government.
The US Justice Department accused CZ of violating criminal anti-money laundering requirements, to which he pleaded guilty before stepping down from his position. This legal action against the CEO of the world’s largest cryptocurrency exchange has sent shockwaves through the crypto industry.
The settlement amount agreed upon by Binance is one of the largest in the history of the crypto industry, if not the largest. The repercussions of this case are not limited to CZ’s resignation and the price drop of BNB. Traders holding long contracts on BNB saw their positions liquidated, with approximately $3 million worth of liquidations occurring within the same hour.
The events that unfolded on Tuesday have raised concerns among industry observers. However, it is important to note that Binance is not expected to collapse like FTX, given the settlement and CZ’s resignation. While the future course of action for the exchange is yet to be officially announced, it is likely that Binance will navigate through this challenging period.
Q: Why did Binance Coin experience such a significant price drop?
A: The price drop was caused by the resignation of Binance CEO Changpeng Zhao and the announcement of a $4.3 billion settlement between Binance and the US government.
Q: What were the allegations against Changpeng Zhao?
A: Changpeng Zhao was accused of violating criminal anti-money laundering requirements by the US Justice Department.
Q: How much were the liquidations on Binance Coin?
A: Traders holding long contracts on Binance Coin witnessed approximately $3 million in liquidations within the same hour of the news of the settlement and CZ’s resignation.
Q: Is Binance expected to collapse?
A: Despite the challenges Binance faces, it is unlikely to collapse like FTX, considering the settlement and the resignation of CZ. The future course of action for the exchange is yet to be announced.