Binance one of the largest crypto exchange globally, reaching a historic settlement with the U.S. Department of Justice. Binance has agreed to pay $4.3 billion to resolve allegations, which include money laundering and sanctions violations, marking a pivotal moment in the regulatory landscape of digital currencies.
Alongside this, Binance announced that CZ would be stepping down as CEO as part of the $4 billion settlement deal. This news added another layer of complexity to the market’s reaction. CZ has been a leading figure in the crypto industry, and his departure signifies a significant shift in Binance’s leadership.
This development has had a notable impact on Binance’s native cryptocurrency, BNB. On November 21, BNB’s price surged to a five-month high of $271.90, reflecting the market’s initial optimistic response to the news of the settlement.
However, the surge was short-lived as the price soon retraced most of its gains, a phenomenon observed in the crypto market, where news often leads to immediate but volatile reactions. BNB price is currently $242.92 at the time of writing.
At the same time, the specifics of the DOJ-Binance settlement remain undisclosed until a press conference scheduled for 3 pm ET on November 21. The lack of clarity could be one reason behind the quick reversal of BNB’s intraday rally.
Furthermore, the surge in BNB’s price was accompanied by an increase in liquidations.
Despite the initial excitement, BNB’s price retraced a majority of its intra-day gains, mirroring the ‘buy the rumor, sell the news’ strategy often observed in the crypto sector.