In the past day, BNB has experienced a remarkable surge of more than 7% in response to news suggesting Binance’s potential involvement in a colossal $4 billion settlement with the United States Department of Justice (DOJ).
On November 20, the price of the Binance-based token surged to $266, reaching its peak since June. Surprisingly, just four hours subsequent to Bloomberg released an article, the price experienced an initial growth to $262 before stabilizing and then increasing further.
In the realm of market capitalization, this particular asset has experienced a staggering 7% increase, crowning it as the most advantageous performer among the top 20 cryptocurrencies. Interestingly, Bitcoin and Wrapped BTC were the sole two coins that joined this asset in the exclusive green zone over 24 hours.
BNB has shown a positive trend for this week by registering a growth of 5.86 % in seven days and 21.67 % in one month. Unfortunately, the asset has made very little progress in the past year as it has only increased by about 0.7%. This can be attributed to its recurring challenges posed by regulatory actions, primarily in the United States, setting it apart from other prominent assets.
The cryptocurrency currently lags behind its record peak of 686 during the prosperous 2021 market, where Bitcoin and other digital assets experienced an extraordinary surge to historic levels.
Binance may have secured a way out
It appears from a recent Bloomberg news that the Binance cryptocurrency exchange is poised to resolve its legal challenges with the DOJ within the next month.
As per the report, the two parties are seeking a settlement deal worth $4 billion to end the department inquiry into the company provided that the exchange meets certain criteria.
Individuals who know the situation reported that Binance should comply with the laws, pay a huge $4 billion in penalties, and publicly state the U.S. laws that it disobeyed. Besides, the enterprise will have to work with a specialized group of people to control and ensure the continuation of its operations in the country.
The DOJ will not proceed with a legal action, but will just file a criminal complaint if the exchange submits to these terms. Moreover, the CEO of Binance, Changpeng Zhao, could face charges of money laundering, bank fraud, and sanctions bypass.
Zhao’s whereabouts in the United Arab Emirates make it unlikely for the charges against them to result in a future arrest, as there is no extradition treaty between their location and the United States.
Increase in trading volumes?
BNB holders are feeling a surge in confidence due to the reports, as a potential deal would bring the lengthy investigation into the company to a close. Following the downfall of FTX, regulators have rekindled their determination to establish industry regulations aimed at safeguarding investors.
This year, the US entity exchange has reportedly committed several breaches. The US SEC and CFTC have sued and accused them. However, they have strongly refuted any wrongdoing.
There was a dip in investor confidence due to increased lawsuits, which translated into low trading volumes and the erosion of the market dominance in the exchange.
Frequently Asked Questions:
1. What factors sparked the recent ascent in value for BNB?
Reports about Binance allegedly reaching a $4 billion settlement with the United States Department of Justice (DOJ) caused a remarkable 7% surge in BNB within the past day. As a result, BNB reached its highest price level since June.
2. At what point in time did the price experience an increase, and which elements had an impact on it?
Bloomberg’s story sparked a surge in prices, swiftly followed by the reported price hike. BNB’s value skyrocketed to $262 within just four hours, settling down momentarily before embarking on another upward trajectory.
3. Is BNB’s recent expansion comparable to the growth experienced by alternative digital currencies?
BNB has distinguished itself as the largest beneficiary amidst the highest 20 cryptocurrencies in terms of market capitalization. It has experienced a notable upswing of 7%. The only other digital currencies, Bitcoin and Wrapped BTC, also saw an increase in value over the past 24 hours, trailing behind BNB’s remarkable surge.
4. How has BNB been performing across various periods?
Over just one week, BNB has displayed consistent progress, boasting an impressive surge of 5.86%. Furthermore, its upward trajectory has been sustained over a whole month, witnessing a remarkable increase of 21.67%. Nevertheless, it is important to note that BNB still lags considerably behind its peak during the 2021 bull market, as it currently stands at a significant 61.4% below its record-breaking high of 686.
5. Are there any updates on Binance’s ongoing legal matters with the Department of Justice?
Binance, as reported by Bloomberg, is actively engaged in negotiations for a colossal $4 billion agreement with the DOJ, to resolve by the upcoming month. This significant accord would encompass a set of specific terms, such as Binance committing to sustained operations within the United States, making financial amends, and diligently adhering to all legal obligations.
6. Should Binance opt to accept the terms of the settlement, what potential ramifications could it encounter?
Provided Binance accepts the stipulations of the settlement, the Department of Justice (DOJ) shall abstain from pursuing legal action against the exchange. Nevertheless, CEO Changpeng Zhao might confront allegations of engaging in illicit money laundering activities, perpetrating bank fraud, and violating international sanctions, potentially leading to criminal charges. Importantly, it should be highlighted that Zhao currently resides in a jurisdiction that lacks an extradition treaty with the United States.
7. In what manner have BNB holders been influenced by the information regarding the possible resolution?
The recent news has provided BNB holders with a renewed sense of assurance, as resolving the investigation would mark the conclusion of the long-drawn-out scrutiny surrounding the company. These developments are occurring amidst intensified regulatory oversight within the cryptocurrency sector, which has intensified following FTX’s downfall.
Credit: https://assets.bwbx.io/images/users/iqjWHBFdfxIU/igUip6X4Cw3k/v1/1200×800.jpg
