BNB Plummets as Changpeng Zhao Resigns Amid AML Charges

Binance’s BNB is currently exchanging hands at $235.24, a slip of 9.70% at the time of drafting this article. This further represents a fall of 4.32% in the last week. While it is normal for volatility to factor in and affect the prices of cryptocurrencies, the situation in the case of BNB is slightly different. The slide has come following the resignation announcement by Changpeng Zhao, now the former Chief Executive Officer of Binance.

He announced his resignation on X, formerly Twitter, and expressed his desire to continue being associated with the crypto platform as a stakeholder. Further, he has said that he will be available to others to consult them in their endeavors. What has caught more attention than his announcement is the fact that he stepped down after pleading guilty to the charges alleged by the US Department of Justice.

CZ has agreed to pay a personal penalty of $50 million after he was found violating the Anti-Money Laundering (AML) laws of the United States. Prosecutors have said this is one of the biggest penalties in corporate history.

Binance, as a firm, is facing a total penalty of $4 billion. CZ has pleaded guilty in a Seattle court, paving the way for Richard Teng to take over his position. Nevertheless, according to the Binance coin price prediction, BNB was initially anticipated to reach its greatest point of $532 by the end of 2023. However, that forecast appears to be deteriorating as CZ leaves the company to join a list that includes Sam Bankman-Fried.

The management at Binance has expressed its commitment to resolve the matter. Reports have even started to surface, mentioning that the crypto firm could soon reach a resolution with US regulators.

Most of the issues have been dealt with, including the agreement on paying the penalty. Parties accusing Binance of wrongly functioning in the region are the DOJ, CFTC, FAC, and FCEN. Reaching a resolution with the US regulators is in line with the commitment to continue growing in the next 50 years. Making this evident is a statement that highlights Binance accepting its mistakes in its initial years amid unexpected growth across the globe.

Richard Teng takes over the position immediately, but his primary job as a successor is to bring a sense of calmness to the minds of investors and community members.

Kraken, for example, is facing charges of commingling user funds with their own funds. So, the macro image of the industry is already in turmoil, with Binance now staying afloat, primarily on the image that it has achieved since 2017.

Several investors have reportedly liquidated their holdings following the resignation of CZ. Reports claim that the liquidated holdings are worth approximately over $3 million. This happened in just one hour. The market cap is down by 9.37% when articulating this piece. The 24-hour trading volume is up by 59.25%.

Bitcoin and Ethereum have also been affected. Bitcoin has slipped by 1.78%, while Ethereum is up by just 0.97%.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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