BNB Surges Following Reports of Potential $4 Billion DOJ Settlement with Binance
Recently, Binance Coin (BNB) has enjoyed an increase of over 7% within a 24-hour period. Following the announcement of a potential $4 billion settlement between cryptocurrency exchange Binance and the United States Department of Justice, BNB has shown strong performance in the market.
Following the report on November 20, Binance Coin spiked by 6%, hitting a value of $262 in a mere 30 minutes. The report suggested that Binance was in negotiations to resolve a Department of Justice probe. This investigation stemmed from alleged violations relating to sanctions, instances of money laundering, and indications of fraud.
Although BNB dropped to $252 approximately four hours after the spike, it managed to make a comeback and hit $266 just two days after the Securities and Exchange Commission (SEC) filed a lawsuit against Binance and CEO Changpeng “CZ” Zhao. This marks Binance Coin’s highest value since June of 2023.
BNB: A Market Cap Leader
In the realm of the 75 largest cryptocurrencies by market capitalization, Binance Coin has recorded the most considerable price increase within the last 24 hours. Currently, BNB is in fourth place in terms of tokens, boasting an impressive market cap of more than $40 billion.
Although BNB has seen a recent uptick in price, it’s worth noting that it still sits 61.4% below its all-time high of $686, which was recorded on May 10, 2021. Despite this, BNB has gained 6.5% since the beginning of the year.
Potential Settlement Implications
There are various potential outcomes in the event that a settlement is reached. One possibility is that Binance pays the 10-figure fine and is permitted to continue its operations within the U.S., albeit under certain conditions designed to ensure full compliance.
There are indications that an announcement relating to a potential agreement could be made before the month’s end. If Binance agrees to the proposed settlement, it would constitute one of the largest penalties ever paid in a cryptocurrency-related criminal case.