Saturday, April 13, 2024

Binance’s Changpeng Zhao Resigns as CEO Following Record $4 Billion Regulatory Settlement


Crypto tokens traded lower on Wednesday after the US Department of Justice imposed a fine of over $4 billion on Binance, making it one of the largest penalties the D.O.J. has ever obtained from a corporate defendant in a criminal matter. Meanwhile, Changpeng Zhao, the founder and former CEO of Binance, resigned from his position and pleaded guilty to violating US anti-money laundering laws.

This move comes as part of a historic $4.3 billion settlement to resolve a long-running investigation into Binance, the world’s largest crypto exchange. The fallout from the settlement marks another significant blow to the cryptocurrency industry, which has faced increasing scrutiny and investigations. Following the Binance news, the global cryptocurrency market cap declined by 2.54% to around $1.38 trillion in the last 24 hours. At 10.58 a.m., BTC was trading 2.54% lower at $36,412, while BNB fell 9.2% at $236. In the last 24 hours, the market cap of Bitcoin, the world’s largest cryptocurrency, fell to $711 billion. Bitcoin went as low as $35.5k due to the Binance news but bounced back and is currently trading around $36.5k.

Major resistance now lies around $37.5k. While Binance Coin (BNB) was amongst the loss-making cryptos in the past 24 hours, it was not the highest loss-making crypto which surprised crypto investors. Even after the news of the Binance CEO stepping down and pleading guilty to the charges applied to them, BNB has fallen from $270 to $233, said CoinSwitch Markets Desk.

The total volume in DeFi is currently $7.04 billion, 10.09% of the total crypto market 24-hour volume. The volume of all stablecoins is now $62.9 billion, which is 90.13% of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 51.57%, according to CoinMarketCap. BTC volume in the last 24 hours surged 32.5% to $27.48 billion. Edul Patel, CEO of Mudrex, said,

“Bitcoin is currently trading above the $36,100 level, as the enthusiasm surrounding the anticipated approval of a Bitcoin Spot ETF has waned due to increased regulatory scrutiny in the U.S. There is now a looming possibility that the approval of the Bitcoin Spot ETF may be delayed until 2024.”CoinDCX Research Team, said, “Although the market has seen a small bounce back, with altcoins gaining momentum, BTC faces a technical challenge, needing to break and stay above $38,000. On the downside, $32,000 is a crucial support level.”

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