Bitcoin and Binance token will drop slightly when CZ is released
Binance founder Changpeng Zhao was released from prison early on September 27, and the price of BTN (BTC) and Binance's BNB (BNB) token fell slightly from the start of the trading day.
According to a previous Forbes report, Zhao holds 64 percent of BNB's total supply, putting the entrepreneur's net worth at $61 billion by June 2024 and making him the 24th richest person in the world at the time. Zhao's wide-ranging comments on Binance's native currency sparked concerns about the token's centralization after the report was published.
Today, the 94 million BNB tokens held by Zhao represent an estimated value of $57 billion at the time of writing – a significant drop from the value in June 2024, which peaked at $700.
According to a 2024 analysis by Gray Wolf Analytics and Forbes, 80 million BNB tokens were originally allocated to the main group of Binance. Additionally, the company still holds approximately 46 million of these tokens.
Related: BNB Chain Update Basics and Using DeFi Support BNB Runs to $600 Issues
Department of Justice fees and settlements affect the value of BNB
The United States Department of Justice (DOJ) announced charges against Binance and Zhao in 2023 – the founder of Binance violated the Bank Secrecy Act.
In a joint filing with the U.S. Treasury's Office of Foreign Assets Control, the U.S. Treasury Financial Crimes Enforcement Network and the Commodity Futures Trading Commission, government regulators said:
“Although Binance is not a publicly traded company, Binance is the largest cryptocurrency exchange in the world, and news related to the criminal and civil liability of Zhao and Binance could have a significant impact on the trading of various cryptocurrencies.”
This statement turned out to be correct, and on November 21, the price of BNB increased by approximately 7% in 24 hours following the news of a $4 billion settlement between Binance and the Securities and Exchange Commission.
The SEC settlement ended up costing Binance $4.3 billion, and Zhao was fined an additional $50 million as part of the settlement. The DOJ also stated that Binance must have independent oversight over the next three years and appointed the Forensic Risk Alliance to oversee the company's trading activities.
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