Aaryamann Shrivastava
FXStreet
- Binance Coin price crashed by over 8% in the span of an hour, falling from $258 to $244 at the time of writing.
- The crash was the result of Binance agreeing to a $4.3 billion settlement with the US government.
- The US Justice Department alleged that CEO Changpeng Zhao violated criminal anti-money laundering requirements.
- After Binance CEO CZ resigned on Tuesday and BNB crashed, nearly $3 million in long contracts were liquidated within a couple of minutes.
Binance Coin price fell by 8.39% in the past hour to trade at $244 as Changpeng Zhao, the CEO of the world’s biggest cryptocurrency exchange and the parent company of the altcoin Binance, resigned on Tuesday.
Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.
— CZ Binance (@cz_binance) November 21, 2023
Binance is no longer a baby. It is…
Read more - Binance may have settled with US DoJ as markets anticipate official announcement, CZ steps down as CEO
Binance Coin price crashes as CEO CZ resigns
Zhao is currently facing charges of violating criminal anti-money laundering requirements, to which he also pleaded guilty following his resignation.
BNB/USD 1-hour chart
Additionally, Binance also agreed to pay $4.3 billion in order to settle the case with the government of the United States, making it one of the largest settlements in the history of the crypto industry, if not the largest.
Following the price crash, traders that had long contracts open on BNB witnessed mass liquidation. At the time of writing, BNB long liquidations neared $3 million in the same hour of the Binance news coming out.
Binance Coin long liquidations
The events that transpired on Tuesday, while considered to be long overdue by many, have also been some of the biggest nightmares for the crypto industry. While no official word from Binance has come out yet detailing the future course of action at the exchange, it is most likely that the exchange will not collapse akin to FTX, given the settlement and resignation.
Read more - Binance moves nearly $4 billion amidst US DoJ demand to end years long investigation
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.