Bitcoin and BNB Prices Plummet as Binance CEO Resigns and Pleads Guilty

Bitcoin Price Falls as Binance CEO Steps Down

The price of Bitcoin experienced a significant drop following the resignation of Changpeng “CZ” Zhao, CEO of Binance, the world’s largest crypto exchange. CZ also pleaded guilty to various criminal charges from the Department of Justice.

Binance’s Native Token Slumps

Binance’s native token, BNB, plummeted by nearly 11% in response to the news of CZ’s resignation and guilty plea. Binance is now facing a hefty fine of over $4 billion for violating multiple U.S. anti-money laundering laws and evading financial regulations.

Bitcoin and Ethereum Prices Decline

Bitcoin’s price dropped by almost 5% to $35,714, erasing a significant portion of its recent gains, while Ethereum, the world’s second-largest cryptocurrency, sank by 4.5%.

CZ Pleads Guilty and Resigns

CZ pleaded guilty in a Seattle court and announced his resignation on the social media platform X. Richard Teng, the former head of Abu Dhabi’s financial authority and current head of Binance’s regional markets, will assume the role of CEO.

Consequences for CZ and Binance

CZ is now prohibited from any involvement in Binance, faces a personal fine of $50 million, and potentially faces prison time. Binance’s settlement and CZ’s resignation mark the end of a prolonged investigation into the exchange’s alleged facilitation of money laundering activities.

Impact on the Crypto Industry

The settlement and resignation of CZ represent another blow to the credibility of the crypto industry, following recent high-profile bankruptcies and accusations of criminal activity against industry leaders.

Regulatory Scrutiny and Impact on Bitcoin Trading

Regulatory scrutiny has led to a decline in Bitcoin trading volumes over the past year, with retail traders exiting the space and trading volumes now significantly lower than their 2021 highs.

Speculation and Regulatory Approval

Despite growing speculation about the SEC’s approval of an exchange-traded fund tracking the price of Bitcoin, the regulator has not given any signals to that effect and has consistently rejected spot-Bitcoin ETF applications due to concerns about price manipulation.