The price of Binance’s BNB token plunged Tuesday upon reports that the leading cryptocurrency exchange and its CEO and founder Changpeng Zhao (aka “CZ”) plan to plead guilty and pay a sizable fine to settle charges from the United States Department of Justice. BNB has fallen 8% in the last hour after posting earlier gains, and currently sits at a price of about $240 as of this writing. Bitcoin and Ethereum, the two leading cryptocurrencies, are starting to see gradual price dips as well, but not nearly to the same level as BNB right now. Binance and Zhao will reportedly plead guilty to violating United States anti-money laundering requirements, with the exchange paying a $4.3 billion settlement to deal with the charges. Zhao has reportedly agreed to step down from his executive role at the top exchange, sources tell The Wall Street Journal. The Department of Justice is expected to announce the settlement at 3pm ET. The deal will also reportedly settle civil charges filed by the CFTC, but will not include a settlement with the U.S. Securities and Exchange Commission (SEC).
This news means that Binance and Zhao will plead guilty to violating U.S. anti-money laundering requirements and pay a hefty fine. It also means that Zhao will step down from his executive role at the top exchange. This could be seen as a bad news for Binance and its users, as the price of BNB token has plummeted and other leading cryptocurrencies have seen gradual price dips as well.
You can read more about this topic here: Decrypt: BNB Plunges as Crypto Market Reacts to Binance CEO Stunner