Crypto markets are mixed as traders digest DOJ action on Binance, CZ
Crypto markets were hit with high volatility on November 21 when the US Department of Justice (DOJ), Commodity Futures Trading Commission (CFTC) and US Treasury announced a $4.3 billion settlement with Binance and former Binance CEO Changpeng Zhao announced. He pleaded guilty to criminal and civil charges related to the cryptocurrency exchange.
US Attorney General Merrick Garland announced that the DOJ has reached a $4.3 billion settlement with Binance and CZ. The agreement forced CZ to plead guilty to willfully violating the Bank Secrecy Act.
In addition to financial penalties, Garland said,
“Going forward, Binance will be required to file suspicious activity reports as required by law. The company will be required to review past transactions and report suspicious activity to federal authorities. This will enhance our criminal investigations into malicious cyber activity and terrorist financing, including the use of cryptocurrency exchanges to support groups such as Hamas.”
At press time, price action in the crypto market continues to fluctuate, with Bitcoin (BTC) trading around $36,700, down 1.79% and altcoins showing a slight recovery from their daily losses.
The whipsaw price action in the market reflects market participants' attempts to digest the details of the Nov. 21 US enforcement action against the cryptocurrency industry.
While the crypto market did not have an opening bell like Wall Street, market participants and traders were widely aware of the settlement, and prices were already reacting to Garland's press release, with Binance Coin (BNB) taking massive gains for a 5-month streak before the press release. Before high.
Related: BNB price pops, then drops, following DOJ-Binance settlement news
Despite the negative news regarding Binance, users of the exchange are in no hurry to leave the platform or the central exchange in general. According to Glassnode, the net change in Bitcoin positions on Binance is much lower than the January and July numbers.
Despite the negative reports, the crypto community is happy with the decision, hoping that a chapter has closed and the entire industry can move forward in a positive manner.
Binance derisking is one of the biggest incentives we can have in crypto.
+Crypto is a “real” industry post $4 billion+ CZ takes long needed Miami vacation and La Arthur+ Market is up, Jan+ GOP approved EFAs win 2024 election, crypto laws approved.
CZ
— Ryan Selkis (D/ACC) (@twobitidiot) November 21, 2023
Binance exchange, which named Richard Teng CEO on November 21 following CZ's departure, echoed the sentiment of the crypto community moving forward.
We are pleased to share that we have reached a resolution with several US agencies related to their investigation.
This allows us to open a challenging yet dynamic learning phase that has helped us make the site a stronger, safer and more secure platform.
— Binance (@binance) November 21, 2023
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
