On November 21, as the U.S. Department of Justice (DOJ), the Commodity Futures Trading Commission (CFTC) and the U.S. Treasury Department announced a $4.3 billion settlement with Binance, former Binance CEO Changpeng Zhao also announced significant fluctuations in the cryptocurrency market. will plead guilty to a felony charge as part of a settlement in criminal and civil cases against the cryptocurrency exchange.
U.S. Attorney General Merrick Garland announced that the Department of Justice reached a $4.3 billion resolution with Binance and CZ. The agreement requires CZ to admit to willfully violating the Bank Secrecy Act.
Garland said that in addition to financial penalties,
“Going forward, Binance must file suspicious activity reports as required by law. The company must review past transactions and report suspicious activity to federal authorities. This will advance our criminal investigations into malicious cyber activity and terrorist fundraising, including Leveraging cryptocurrency exchanges to support groups like Hamas.”
At press time, price action within the crypto market continues to fluctuate, with Bitcoin (BTC) down 1.79% to trade near $36,700, and altcoins recovering slightly from intraday losses.
Price fluctuations within the market reflect market participants trying to digest the details of the November 21 U.S. law enforcement action against the cryptocurrency industry.
While the cryptocurrency market didn’t have the same opening bell as Wall Street, market participants and traders were widely aware of the settlement, and prices were already reacting ahead of Garland’s press conference, with Binance Coin (BNB) Prices soared to their highest level in five months. The price was trading high before giving back most of its gains and before the press conference.
related: BNB price rises and then falls following news of Justice Department settling with Binance
Despite the negative news surrounding Binance, users of the exchange are generally in no rush to exit the platform or centralized exchanges. According to data from Glassnode, the net Bitcoin position change on Binance was much lower than the January and July figures.
Despite the negative press, the cryptocurrency community cheered the decision as closing a chapter and hoped the industry as a whole could move forward in a positive way.
Binance de-risking is one of the biggest catalysts we can have in the crypto space.
+ Cryptocurrency is a ‘real’ industry after $4 billion settlement
+ CZ Take a long-awaited Miami vacation like Arthur
+ Markets rally, ETF approved in January
+ Republicans win 2024 election, cryptocurrency law passedCzech Republic
— Ryan Selkis (d/acc) (@twobitidiot) November 21, 2023
Following CZ’s resignation, Binance exchange appointed Richard Teng as CEO on November 21, reaffirming the crypto community’s views on moving forward.
We are pleased to report that we have reached resolutions with multiple U.S. agencies regarding their investigations.
This allows us to turn the page on a challenging but transformative chapter of learning that helps us become a stronger, safer and more secure platform.
— Binance (@binance) November 21, 2023
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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