Binance Incident Causes Massive Volatility In The Crypto Market
- The Binance incident resulted in significant fluctuations in the crypto market, with 108,000 BTC options and 1.2 million ETH options set to expire.
- Changpeng Zhao resigned as CEO and pleaded guilty to violating US anti-money laundering laws, leading to a $4.3 billion fine for the crypto exchange.
- Binance’s settlement with the US Department of Justice concluded a lengthy investigation, ensuring the exchange’s continued operation.
In a week marked by a historic settlement between Binance and the US Department of Justice, the cryptocurrency market experienced significant turbulence.
Crypto Market Faces Turbulence Amidst Binance Incident
The crypto market is grappling with the aftermath of the Binance incident. Reports from Greeks.live indicate that 108,000 BTC options with a Put Call Ratio of 0.83, max pain at $33,000, and a notional value of $4.04 billion are about to expire. Additionally, 1.2 million ETH options, with a Put Call Ratio of 0.71, max pain at $1,700, and a nominal value of $2.47 billion, are nearing expiration.
Binance’s founder, Changpeng Zhao, widely known as CZ, resigned as CEO and pleaded guilty to violating US anti-money laundering regulations. The company accepted guilt for encouraging US users to conceal their locations, facilitating evasion of US anti-money laundering laws.
A landmark $4.3 Billion DOJ Settlement Shakes The Crypto Industry
As part of the plea agreement, Binance faces a hefty $4.3 billion fine, covering civil charges brought by regulators. CZ himself agreed to pay a $50 million fine, with the possibility of an 18-month prison sentence pending the imminent verdict. Although he no longer has an executive role, CZ will still retain majority ownership of the company.
The Binance incident concluded a prolonged investigation into the exchange, which was established in 2017. Despite the legal setback, the plea agreement secures Binance’s operational continuity.
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