Binance founder Changpeng Zhao was released from custody on September 27, coinciding with a dip in the prices of Bitcoin and Binance's BNB token.
Charges and Market Impact
The United States Department of Justice announced charges against Binance and Zhao in 2023, alleging that the founder violated the Bank Secrecy Act. In a joint filing from several U.S. agencies, it was stated that news related to Zhao and Binance’s criminal and civil liability could significantly impact the trading of various cryptocurrencies.
Zhao’s Asset Status
According to a previous Forbes report, Zhao holds 64% of the total BNB supply, which was valued at around $61 billion in June 2024, making him the 24th richest person in the world at that time. Today, Zhao's 94 million BNB tokens are worth approximately $57 billion, a significant reduction compared to June prices when a single token exceeded $700.
SEC Settlement Consequences
The SEC settlement cost Binance $4.3 billion, and Zhao was fined an additional $50 million. As part of the agreement, the DOJ stipulated independent monitoring of the company for the next three years, appointing the Forensic Risk Alliance to oversee business operations.
The release of Changpeng Zhao and subsequent events have shown the significant influence of legal issues on the cryptocurrency market. Despite the SEC settlement, the ongoing developments around Binance and its founder continue to concern traders and analysts.
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