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BNB Price Soars As Binance Discusses $4 Billion Fine To Settle Department Of Justice Case

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Binance CEO Changpeng Zhao
Binance CEO Changpeng Zhao

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The BNB price soared as much as 7% after Bloomberg News reported that Binance is in discussions with the US Department of Justice (DoJ) that may result in it paying a $4 billion fine to settle allegations of multiple criminal violations.

The discussions with the DoJ may result in a settlement within weeks, but founder Changpeng Zhao might still face criminal charges, Bloomberg reported, citing people familiar with the matter.

Binance, the world’s biggest crypto exchange, has been accused of money laundering, violating sanctions, bank fraud, and breaking US securities laws in a years-long case that has weighed heavily on the crypto industry

A $4 billion settlement would make it one of the biggest in the history of the cryptocurrency space. Whether other conditions would be imposed as a part of the settlement are unknown, Bloomberg said. 

The BNB token, which powers the Binance ecosystem, spiked as markets interpreted the news as a bullish, best-case scenario for the beleaguered crypto exchange. It subsequently pared gains to trade up 4.8% at $260.73 as of 06:12 EST.

With Zhao now resident in the United Arab Emirates, which doesn’t have an extradition treaty with the US, he would have to agree to return to the US to face any charges brought against him. 

Binance Hit Hard By Lawsuits, Regulatory Scrutiny 

Lawsuits and regulatory scrutiny have hit Binance’s business hard this year. 

The cryptocurrency exchange giant saw its market share nosedive from 74% in December 2022 to 50% last month, according to The Block.

In contrast, exchanges like Upbit, and OKX, recorded upticks in their respective market shares between August and October this year. Adding to Binance’s woes is a growing list of executives that are parting ways with the industry leader. 

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