The U.S. Department of Justice is currently engaged in negotiations with Binance, the world’s largest cryptocurrency exchange, seeking a resolution to conclude a comprehensive investigation into alleged money laundering, bank fraud, and sanctions violations. The news has already stirred up the market, especially regarding BNB.
Changpeng Zhao, the founder of Binance, also known as “CZ,” could potentially face criminal charges in the United States under this agreement. Despite residing in the United Arab Emirates, which lacks an extradition treaty with the U.S., there is a consideration that Zhao might cooperate voluntarily with U.S. authorities. Additionally, the government entity is seeking more than $4 billion as part of the proposed agreement.
The resolution process could be announced by the end of this month, according to sources familiar with the negotiations. However, neither Binance nor the Department of Justice has officially commented on the matter.
The Department of Justice has led one of the most extensive investigations into a cryptocurrency company. If accepted, the proposed resolution would involve one of the largest-ever penalties imposed in a criminal case related to cryptocurrencies.
The allegations include Binance’s potential involvement in evading sanctions against Iran and Russia, as well as suspicions of facilitating transactions that fund Hamas. The regulatory entity aims to balance the resolution to allow Binance to continue operating and avoid negative consequences that could impact markets and cryptocurrency investors.
Impact on BNB Price
In response to the news of the negotiations, Binance Coin (BNB), the native cryptocurrency of Binance, experienced an 8.74% increase, reaching $266.82 within a span of 9 hours.
According to the latest data from CoinMarketCap, at the time of writing this note, BNB is trading at $260.26 per unit, representing an approximately 5% increase in the last 24 hours.
Furthermore, the market capitalization grew by 4.9%, reaching $39.5 billion, positioning it as the 4th largest cryptocurrency in the market.
The trading volume in the last 24 hours was nearly $1.635 billion, indicating an increase of around 155% and placing it as the 7th largest cryptocurrency by volume.
We will have to await the results of the negotiations to see how it ultimately affects CZ, Binance, and the market itself.