fxs_header_sponsor_anchor

BNB price loses key support as US DoJ calls Binance CEO Changpeng Zhao a flight risk

  • Binance Coin price has extrapolated the fall almost 2% on the day, losing the critical support at $227.70.
  • The slump comes as the DoJ challenges Binance CEO Changpeng Zhao as a flight risk.
  • BNB could drop 10% to the floor price at $204.60 unless bulls show resolve.

Binance Coin (BNB) price is suffering in the aftermath of the US government clamping down on the world’s largest cryptocurrency exchange and its CEO, Changpeng Zhao (CZ).

Also Read: Binance CEO CZ may not return to the UAE before sentencing

Binance CEO is a flight risk, US DoJ Says

The US Department of Justice (DoJ) has challenged CZ’s release on a $175 million bond, saying in a filing that he is a flight risk. The top criminal justice authority in the US, the DoJ argues that the risk can be managed by ensuring that the Binance executive does not leave the US.

The filing is a surprise considering that CZ voluntarily entered the US to make an appearance in court with the presentation that he was not a flight risk. The judge in charge of the case had found that CZ was not a flight risk even while residing in the UAE. 

The determination reads, “Based on all the relevant facts, including Mr. Zhao’s voluntary self-surrender, his intent to resolve this case, and the sizable bail package he proposed, Mr. Zhao presents no risk of flight, even while residing in the UAE."

However, DoJ prosecutors fought the judge’s case. The bone of contention is that the potential severity of the sentence would give CZ incentive to head back to the UAE in pursuit of the country’s no extradition treaty with the US.

Judge orders CZ must remain in the continental US for now

Based on the latest report, the judge will review the decision to allow CZ to return to the UAE, with no final decision being made just yet.

Meanwhile, CZ continues to await his sentencing in February after capitulating to the DoJ. He pleaded guilty and resigned as Binance CEO, making room for Richard Teng to take over.  

Judge says former binance CEO Changpeng Zhao cannot leave us ahead of sentencing

Binance Coin price eyes 10% fall amid DoJ-related chaos

Binance Coin (BNB) price continues to suffer under the weight of the former CEO’s troubles with the US government, eyeing a 10% fall to the $204.60 support floor. The Relative Strength Index (RSI) is southbound, evidence of falling momentum. The Awesome Oscillator (AO) supports the outlook with a negative reading and red histogram bars.

BNB/USDT 1-day chart

On the other hand, increased buying pressure could see BNB price pull north, reclaiming territory above $247.80 within the confines of the ascending parallel channel. In a highly bullish case, the gains could extend beyond the midline of the technical formation at $260.00, breaking out to tag $280.00. Such a move would constitute a 25% climb above current levels. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.