Source: AdobeStock / akif
BNB has surged over 7% in the last 24 hours after reports of Binance being involved in a potential $4 billion settlement with the United States Department of Justice (DOJ).
The recent rise in the Binance-based token marks its highest point since June after the price moved to $266 on Nov 20. The price uptick could be seen barely four hours after Bloomberg broke the story as the price initially grew to $262 before trading sideways and making the subsequent rise.
A 7% growth makes the asset the biggest gainer among the top 20 cryptocurrencies by market capitalization and it was followed by Bitcoin and Wrapped BTC as the only coins in the 24-hour green zone.
BNB has maintained a stable growth this week posting a 5.86% growth in the last seven days and a 21.67% rise over the past month. The last year has seen the asset record a 0.7% rise, a figure lower than other top assets due to frequent onslaught by global regulators particularly in the United States.
The coin is still 61.4% adrift of its all-time high of 686 in the 2021 bull market which also saw several digital assets like Bitcoin soar to an all-time high.
Binance may have secured a way out
A Bloomberg report suggests the legal issues cryptocurrency exchange Binance has with the DOJ might be winding up as early as next month.
The DoJ is seeking a settlement of more than $4 billion from @binance as a proposed resolution to a yearlong investigation into the exchange, Bloomberg reported on Monday citing people familiar with discussions.#CryptoNewshttps://t.co/JnS69Kf5YV
— Cryptonews.com (@cryptonews) November 20, 2023
Per the report, both parties are working on a $4 billion settlement deal to stop the department’s investigation into the company while the exchange meets certain conditions.
Citing sources familiar with the matter, it was reported that Binance would continue its operations in the country while complying with the laws and will be required to pay $4 billion in fines and publish a report admitting U.S laws which it breached and will comply with a monitoring team to ensure compliance in the future.
If the company agrees to these conditions, the DOJ will make a criminal complaint but will not prosecute the exchange. Changpeng Zhao, the CEO of Binance might also face criminal charges for allegations of money laundering, bank fraud, and breach of sanctions.
Zhao resides in the United Arab Emirates which does not have an extradition treaty with the United States so the charges may not lead to a future arrest.
Increase in trading volumes?
The reports have boosted the confidence of BNB holders as a deal would mean an end to the long investigation into the company. After the fall of FTX, regulators renewed their efforts to industry regulations in a bid to protect investors.
This year the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have brought charges against the exchange US entity for several alleged breaches which the company has denied.
The proliferation of lawsuits led to reduced investor confidence and a slump in the exchange’s spot trading volumes and market share.
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