BNB Plunges Sharply, With Outflows of Around $1 Billion

BNB price succumbs to selling pressure as Binance experiences over $800 million in outflows.

Bnb Plunges Sharply, With Outflows Of Around $1 Billion_65b9703123526.webp

In a significant blow to the cryptocurrency industry, Binance, the world’s largest crypto exchange, has been hit with a hefty $4.3 billion settlement from the U.S. Department of Justice (DoJ) and agreed to exit the US market. The settlement stems from allegations of money laundering and sanctions violations.

The immediate impact of these developments is evident in the price of BNB Coin, Binance’s native cryptocurrency. BNB has plunged by 12% in the past 24 hours, currently trading at $234 with a market cap of $35.5 billion.

bnb plunges sharply with outflows of around 1 billion 65b97031280d0

The turmoil surrounding Binance has also triggered a surge in trading volumes, with BNB trading volumes exceeding $2.5 billion. Moreover, data from DeFiLlama reveals a net outflow of over $800 million in assets from Binance over the past 24 hours, contrasting with OKX, which experienced a net inflow of $145 million. Despite this outflow, Binance remains the largest crypto exchange in terms of asset value, holding over $67.9 billion.

The exchange’s outflows have intensified as former CEO Changpeng Zhao (CZ) faces multiple charges and awaits sentencing scheduled for February 23, 2024. CZ is currently out of custody on a $175 million bond, with permission to travel to his home country of the UAE. However, he is required to appear 14 days ahead of the next hearing.

Binance’s Complete US Exit

Earlier this year, Binance.US ceased operations following a lawsuit filed by the US Securities and Exchange Commission (SEC) in June 2023. As part of the current settlement with FinCEN, Binance has committed to a complete withdrawal from the US market. Additionally, a monitor will be appointed for five years to oversee the exchange’s sanctions compliance program. The U.S. Treasury Department will also retain access to Binance’s records and systems throughout this period.

bnb plunges sharply with outflows of around 1 billion 65b970313225c

Substantial Fines and a Five-Year Monitoring Period

The settlements with FinCEN and OFAC entail substantial penalties. Binance will pay $3.4 billion to FinCEN and $968 million to OFAC. These agreements stem from accusations by both agencies that Binance violated the Bank Secrecy Act and sanctions programs.

In addition to the fines, Binance has agreed to appoint a monitor for a five-year period. This monitor will be tasked with overseeing the exchange’s sanctions compliance program and ensuring that it adheres to all applicable US regulations.

Related: Binance Facilitated Financial Transactions to Hamas and Other Militant Groups

The DOJ settlement also led to the resignation of Binance’s founder and CEO, Changpeng Zhao (CZ). CZ stepped down from his position in conjunction with the settlement agreement. CZ is currently out of custody on a $175 million bond. His sentencing is scheduled for February 23, 2024.

Conclusion

The recent developments surrounding Binance have sent shockwaves through the cryptocurrency industry. The exchange’s exit from the US market, hefty fines, and leadership changes are likely to have a significant impact on the crypto landscape.

5.0/5

(100 votes)

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest

Bingx Announces Listing Of Swarm Markets (smt)

Altcoin | Editor Choice

BingX Announces Listing of Swarm Markets (SMT)

BingX exchange announces the listing of Swarm Markets (SMT) - a DeFi platform licensed by the Germany's Federal Financial Supervisory Authority (BaFin).

Azcnews Nigeria Confirm

News | Editor Choice | Policy & Regulations

Central Bank of Nigeria Confirms Not Blocking Crypto Users

The Central Bank of Nigeria (CBN) has officially confirmed reports of their freezing of user accounts on platforms such as Bybit, OKX, Kucoin, and Binance as fraudulent.

Azcnews President Joe Biden Proposes Highest Tax Rate In History

News | Editor Choice | Policy & Regulations

President Joe Biden Proposes Highest Tax Rate in History

US President Joe Biden has just proposed increasing capital gains tax to 44.6%, marking the highest federal capital tax rate ever.

Bitcoin Dip 64500

News | Bitcoin | Editor Choice

Bitcoin Dips to $64,500, Yet Scarcity Remains High

Despite Bitcoin dipping slightly to $64,500 currently, most experts believe that prices will soon enter a bullish cycle.

What Is Gas Fee

Blockchain | Editor Choice | Research

What is Gas Fee? A Guide to Optimizing Gas Fees Effectively

In any blockchain environment, Gas fees play a crucial and nearly irreplaceable role. So, what is Gas fee? How can you optimize Gas fees? Let's find out!