BNB Dips By 10% After Binance Plea Deal

TL;DR

• BNB has lost 10% of its value over the last 24 hours and is now trading at around $230 per coin.

• Binance continues to be the center of attention this week following the resignation of its CEO.

BNB Losses 10% of Its Value

BNB, the native coin of the Binance ecosystem, has lost 10% of its value over the last 24 hours. The poor performance comes following the cryptocurrency exchange’s settlement with regulators in the United States, including the resignation of its CEO, Changpeng Zhao.

Binance is set to pay a $4.3 billion fine for violating sanctions and money-transmitting laws. Binance's founder CZ pleaded guilty and stepped down as CEO.

Documents revealed that the cryptocurrency exchange relied on customers in the United States as a significant source of revenue and trading activity. Binance was also accused of compliance failures and deliberate obfuscation to protect these crucial yet off-limits users for years. 

CZ’s lawyers revealed that his sentencing will be delayed by 6 months and the former Binance CEO has agreed to waive his right to appeal if the sentence does not exceed 18 months.

Bitcoin, the world’s leading cryptocurrency by market cap, dropped towards the $36k level on Tuesday before slowly recovering. At press time, the price of Bitcoin stands at $36,461 per coin. 

Bitcoin is slowly recovering as investors are optimistic that Binance’s struggles could pave the way for the approval of a spot Bitcoin ETF. 

With the broader market currently bearish, the total cryptocurrency market cap has dropped below the $1.4 trillion mark, losing nearly 2% of its value over the last 24 hours.