This downturn follows the news that Binance CEO Changpeng Zhao, popularly known as CZ, has decided to plead guilty to serious anti-money laundering charges.
Other leading cryptocurrencies of the likes of Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Cardano (ADA) have also experienced substantial declines. Obviously, Binance Coin (BNB) is the biggest laggard in the top 10, plunging more than 7%.
End of an era
The crypto industry is witnessing the end of an era as Zhao is stepping down amid grave criminal charges. On top of giving up his CEO role, CZ has a three-year prohibition on working with Binance.
This decision comes in the wake of a comprehensive investigation by the U.S. Department of Justice, which has resulted in several charges against Binance and CZ, including conspiracy to conduct an unlicensed money transmitting business and failure to maintain an effective anti-money laundering program.
As reported by U.Today, Binance has agreed to a historic settlement, paying $4.3 billion in fines to resolve both criminal and civil claims. This event marks a significant shift in the cryptocurrency landscape that is reminiscent of the downfall of other industry giants like Sam Bankman-Fried of FTX.
A silver lining?
Despite the tumultuous events surrounding Binance and its CEO, several industry observers are viewing this development in a positive light.
David Hoffman, a prominent figure in the crypto world, views the DOJ settlement with Binance as a bullish signal for the industry. He believes that the settlement will eventually grant U.S. approval and regulatory clarity.
As reported by U.Today, Cryptocurrency mogul Mike Novogratz recently echoed similar sentiment. He believes that the crackdown could pave the way forward for the cryptocurrency industry.
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