- Crypto exchange Binance’s BNB token dropped around 5% and as of 12:40 am ET, the price 1 BNB token stands at $267.65.
- The price crash is a result of a Reuters report stating that half of DoJ prosecutors want to file criminal charges against the exchange.
- Additionally, Binance has paused USDT withdrawals via on the Ethereum Network and the BEP2 Network.
- Binance has refuted the report while adding that it has smooth relations with regulators.
Binance, the world’s biggest crypto exchange, seems to have become the center of attraction for the entire crypto community, and even the slightest of rumors seem to have grave repercussions. A report was circulated regarding a criminal investigation of the leading crypto exchange which has led to a strong crash in the price of the exchange’s native token, BNB.
Currently the world’s forth biggest cryptocurrency, the BNB token is used for multiple purposes in the Binance ecosystem and differs from other tokens like FTX’s FTT token, which had no underlying value. Interestingly, as of 12:40 am ET, the price of 1 BNB token stands at $267.65, and it is down by almost 5% in the last 24 hours due to the panic and FUD created by a report from Reuters that the US Department of Justice (DoJ) is investigating the leading exchange for money laundering activities.
It is also crucial to note that the trading volume of Binance’s BNB token has surged by 115.72% in the last 24 hours which suggests a surge in the selling pressure for the same. According to the algorithm from PricePredictions, the forth largest cryptocurrency is currently trending downwards, a potential loss is eminent for holders.
Additionally, according to the chart below, a downtrend on the hourly timeframe can also be confirmed.
The chart indicators for BNB token currently show that traders as well as investors are becoming increasingly bearish on Binance crypto exchange’s native token which is not a very good sign for holders. Additionally, the market dominance of the token will fall below 5% if the price crash continues to strengthen.
Investigation of Binance
According to a report from Reuters, there is a split between the U.S. Department of Justice prosecutors regarding a long-running criminal investigation into Binance. This split has caused a delay in the authorities reaching a decision, as per four people familiar with the matter. Interestingly, this case began in 2018 when the Changpeng Zhao-led crypto exchange was in its initial days.
The report states that this investigation is regarding Binance’s compliance with anti-money laundering laws and sanctions of the United States. Interestingly, at least half of the prosecutors believes that there is circumstancial evidence to make a move against the exchange and its founder, who is also popular as CZ in the crypto community, and file criminal charges. On the other hand, the remaining prosecutors want more time to review evidence.
Interestingly, the report also added that Binance’s defense attorneys at U.S. law firm Gibson Dunn have held meetings with DoJ officials recently regarding the case. Furthermore, sources told Reuters that the charges are related to unlicensed money transmission, a money laundering conspiracy, and criminal sanctions violations.
It is also crucial to note here that Binance has paused USDT withdrawals via on the Ethereum Network and the BEP2 Network, as seen in the image below.
Reuters also claims that Binance had weak anti-money laundering laws, due to which it was able to process over $10 billion in payments for criminals and companies seeking to evade US sanctions.
Additionally, it is also crucial to note that the official Binance Twitter account refuted Reuter’s report stating that the media outlet “has it wrong again.”
The exchange stated that it has a team of almost 300 cyber investigators collaborating with authorities around the world and Binance collaborated on 70 workshops and training sessions with law enforcement and prosecutors in a variety of countries including Argentina, Brazil, Canada, France, Germany, Israel, Netherlands, Philippines, Sweden, South Korea, Thailand, the UK, and more.