$4 billion. That's the mammoth amount of penalty that the world's largest crypto exchange Binance is being asked to pay. But despite facing this penalty, there has not just been calm but in fact cheer in the crypto market. Let's unfold what's been happening.
The prospect of a resolution of the US criminal investigation into Binance has led to the BNB token, which is the coin linked to billionaire Changpeng Zhao¡¯s Binance ecosystem ¡ª jumped more than 2% yesterday. This came after it was reported?that the US Justice Department is seeking more than $4 billion to end the years-long probe. Talks between the department and Binance include the possibility that Zhao would face US criminal charges, people familiar with the discussions said, as per a?Bloomberg report.
While the financial penalty would go down as one of the biggest levied against a company by the US government, a resolution would also assuage some worries about the future of Binance.?Binance is the largest in the digital asset sector and is used for both spot and derivatives trading ¡ª though its dominance has declined as the company fields regulatory probes in key jurisdictions.?
On the other hand,?the exact details of Binance¡¯s finances are a closely held secret. The company generated?at least $20 billion?of revenue during the crypto boom in 2021, according to a Bloomberg analysis last year of its trading volume and fees.??
Also Read;?The Story Of One Of India's First?Crypto?Billionaires Jaynti Kanani
¡°A resolution to the Binance investigation would be unequivocally positive given the exchange¡¯s leadership role in liquidity,¡± said Sydney-based?Richard Galvin, co-founder at Digital Asset Capital Management. At the same time, investors are digesting a ¡°very strong market-wide rally¡± over the past few weeks, he said.
¡°If Binance settles the criminal lawsuit it means that the crypto industry would have removed the biggest obstacle to the launch of a bull market next year,¡± said Cici Lu McCalman, founder of blockchain adviser Venn Link Partners, as per the report.
After a bloodbath year that saw the crypto market losing trillions of dollars in market value, 2023 has been a year of much-needed recovery for cryptocurrencies. Let us have a look at how the major cryptocurrencies have performed this year to date:
Bitcoin-Up 125%?
Dogecoin-Up 10%?
Ethereum-Up 68%??
Tether-Up 0.8%
BNB (Binance coin)-Up 7%
XRP Ripple-Up 81%
Cardano-Up 55%
Also Read:?Crypto?Trader Hit By Scam Loses $650,000 In Just Two Seconds
For the latest and interesting financial news, keep reading Indiatimes Worth.?Click here.