Binance, CZ settlement with US DOJ ‘bullish for Bitcoin ETF’ says crypto community
The crypto community on social media greeted the news of the agreement between Binance, Changpeng “CZ” Zhao and the United States Department of Justice (DOJ), which removes one of the remaining obstacles before the long-awaited approval. A Bitcoin exchange-traded fund (ETF).
The $4.3 billion settlement between the DOJ and CZ includes a plea agreement with CZ, who agreed to step down as CEO of Binance, the world's largest crypto exchange, for violating US anti-money laundering laws.
The news of the deal and CZ's release triggered a market correction that saw nearly $1 billion of crypto assets exit the crypto exchange, while roughly $175 million worth of upgraded crypto space was released.
Over $1 billion in outflows from @Binance in the last 24 hours pic.twitter.com/nNMa10gtfg
— Pleditor (@Pleditor) November 22, 2023
In addition to the market correction, most members of the crypto community viewed the settlement with the DOJ and CZ pleas as a major victory for the exchange and the crypto industry. Many critics have previously argued that the United States' pursuit of Binance would end the dominance of the crypto exchange.
This is the biggest victory of CZ's life. The perfect 3D chessmaster.
Since day 1, DOJ and SEC have always been Binance's biggest risk. CZ's biggest threat. The dragon on the horizon.
Now, after years of uncertainty, the DOJ is finally neutral. The dragon was slain….
— Cole Garner (@ColeGarnersTake) November 22, 2023
Many others called Binance's settlement with the DOJ the last step before the US Securities and Exchange Commission (SEC) approves the spot Bitcoin (BTC) ETF. Overall, the crypto community seems to see the deal as a win-win situation for the crypto ecosystem and a boon for the next bull run.
Sweet baby Jesus, this bully! Binance's settlement with the DOJ will remove the burden. I think Bitcoin Spot ETF approvals are just around the corner.
When we start pumping and the euphoria returns, don't forget to take advantage! https://t.co/LCokdV7Y7E
— Tony Edwards (Thinking Crypto Podcast) (@ThinkingCrypto1) November 21, 2023
However, not everyone in the crypto community was bullish on the Binance-DOJ settlement. Some have commented that the crypto community is still waiting for action from the SEC against Binance and that the exchange will face a tougher battle as the agency refuses to settle.
Seeing a lot of bull posts on my timeline.
I don't think people understand the situation…
It is clear that Binance will settle and pay a huge fine. But that doesn't mean it's all solar going forward. Remember the SEC/DOJ had all their firepower focused on Binance, now that… pic.twitter.com/cgpDElDqRR
— ImNotTheWolf (@ImNotTheWolf) November 22, 2023
However, the SEC lawsuit is civil, and analysts believe that the DOJ settlement means that Binance and the crypto industry have removed the biggest hurdle to start a bull market.
Few have compared Binance's settlement with the DOJ to that of BitMEX, in which CEO Arthur Hayes resigned from his role after pleading guilty to violating anti-money laundering laws. He was later sentenced to two years in prison, avoiding a possible six-to-12-month prison sentence.
