2023-11-21 22:50:00
On November 21, the U.S. Department of Justice (DOJ), U.S. Treasury Department, and Commodity Futures Trading Commission (CFTC) announced a $4.3 billion settlement with Binance. ) agreed to plead guilty to violating the Bank Secrecy Act as part of criminal and civil proceedings. This caused major fluctuations in the virtual currency market.
U.S. Attorney General Merrick Garland announced that the DOJ has reached a $4.3 billion settlement with Binance and Mr. Zhao. Under the agreement, Mr. Zhao pled guilty to willfully violating the Bank Secrecy Act.
In addition to financial penalties, Attorney General Garland said, “Binance will now be required to report suspicious activity as required by law.” “The company must review past transactions and report suspicious activity to federal authorities, which will advance criminal investigations into malicious cyber activity and terrorist financing. This includes cases where virtual currency exchanges are used to support
At the time of writing, the cryptocurrency market has been volatile, with Bitcoin (BTC) down 1.79% and trading around $36,700. Altcoins are also in decline across the board.
Bitcoin and altcoin fluctuations over the past 24 hours. Source: Coin360
The sharp price movements within the market reflect the process by which market participants are trying to understand the details of the US enforcement action on November 21st.
Although the crypto market does not have an opening bell like Wall Street’s stock market, the settlement was widely recognized by market participants and traders, and prices were already reacting before Garland’s press conference. Binance Coin (BNB) erased most of its gains following hitting a five-month high, with the price falling ahead of the press conference.
Despite the negative news regarding Binance, the exchange’s users are in no hurry to leave the platform. According to Glassnode, Bitcoin’s net position change on Binance is significantly lower than the numbers seen in January and July.
Binance Bitcoin net flow. Source: Glassnode
Despite the negative press, the crypto community welcomes this decision as a break and hopes the industry as a whole can move forward in a positive way.
Binance derisking is one of the biggest catalysts we might have in crypto.
+ Crypto is a “real” industry post $4 billion settlement
+ CZ takes a long-needed Miami vacation a la Arthur
+ Market rips higher, ETFs approved in Jan
+ GOP wins 2024 election, crypto laws passedCZ
— Ryan Selkis (d/acc) (@twobitidiot) November 21, 2023
Following Zhao’s resignation, Binance appointed Richard Teng as CEO on November 21st. Zhao said Teng “will lead the company into its next period of growth.” Teng himself said he would “reassure our users” and “work with regulators to develop innovations.”
We’re pleased to share we’ve reached resolution with several US agencies related to their investigations.
This allows us to turn the page on a challenging yet transformative chapter of learning that has helped us become stronger, safer, and an even more secure platform.
— Binance (@binance) November 21, 2023
The insights and interpretations expressed in this article are those of the author and do not necessarily reflect the views of Cointelegraph. This article does not contain investment advice or recommendations. All investments and trading involve risk and readers should do their own research and make their own decisions.
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