The cryptocurrency market was in turmoil when Binance CEO resigned

The information that CZ left the position of CEO of Binance is causing turmoil in the market, the prices of Bitcoin, Ethereum, and BNB are continuously going up and down, reflecting the instability of the market.

According to Cointelegraph , chaos began in the digital currency community when rumors of Binance accepting a $4.3 billion fine to the authorities spread on November 21. After that, social networks "exploded" when billionaire Changpeng Zhao (CZ) pleaded guilty and resigned on the evening of November 21 (3:36 a.m. November 22, Hanoi time).

Data from Coin Marketcap shows that, as soon as CZ's tweet was published, prices in the cryptocurrency market continuously fluctuated. Bitcoin price fell from 37.6 thousand to 35.7 thousand USD but currently increased slightly to 36.1 thousand USD.

Meanwhile, the price of Ethereum, the world's second largest cryptocurrency, continuously changed from 1.9 thousand USD to 2 thousand USD and then fell back to the price range of 1.9 thousand USD.

BNB, Binance's token, suddenly jumped from below 250 to 269 USD on the night of November 21, the highest level in the past 5 months. However, when CZ announced his resignation, the token price dropped to 238 USD and is currently around 230 USD.

Bitcoin price change on the morning of November 22. Source: Coinmarketcap

According to analysts, price fluctuations are proportional to user sentiment about how CZ's resignation will affect the market. In a filing with the federal court, the US market regulator also noted that the agreement involving the Binance CEO could greatly affect the company, users and the global cryptocurrency market.

"This community is subject to significant volatility from external events. Here, given the positions of Binance and Changpeng Zhao, even a simple federal criminal conviction could cause major market volatility ", Cointelegraph quoted court records.

Meanwhile, the cryptocurrency community is divided after the resignation announcement. Some are worried that Binance's number one position could change, leading to market sell-offs. This could be the first step in the downfall of the exchange.

However, many people believe that Binance has carefully prepared before appointing Richard Teng as the new CEO. Investor Ryan Selkis said on X that CZ's actions are a way to minimize major risks for both Binance and the cryptocurrency community. "CZ will have a long vacation, the market will go up. The court's conclusion will be an important premise for the cryptocurrency law to be passed," Selkis said.

Meanwhile, in his first announcement as CEO of Binance, Richard Teng emphasized that his top priority after taking office is: "Reassuring users, ensuring the community continues to trust their financial capabilities." , company security and safety".

Illustration of market ups and downs after information about Binance and CZ. Photo: Cointelegraph

On the morning of November 22, Hanoi time, Binance founder Changpeng Zhao announced his resignation as CEO. "I made a mistake and I must take responsibility. This is the best thing for the community, for Binance and for myself," CZ wrote on X. Earlier that same day, CZ appeared before a Seattle court and pleaded guilty. "non-compliance with anti-money laundering regulations".

Previously in August, Cointelegraph reported that US Department of Justice (DOJ) officials had looked into fraud allegations against the world's largest cryptocurrency exchange. However, they fear that if prosecuted, a user exodus will occur, leading to a similar outcome to FTX . In case Binance goes bankrupt, users will lose a lot of money and the cryptocurrency market will go through a big storm. Faced with that risk, DOJ is forced to consider a safer option than fining and postponing prosecution of related parties. Binance will still be responsible for the investigation agency's charges, but is given the opportunity to minimize the impact on users.

The court's sentencing date for CZ is expected to be February 23, 2024. Former Binance CEO could face up to 18 months in prison. He said the US regulator would not accuse Binance of misappropriating any user funds or engaging in any market manipulation.

In recent months, turbulence has continuously hit Binance. After being investigated by authorities across Europe, in March, Binance and its CEO were sued by the US Commodity Futures Trading Commission (CFTC) for allegedly violating eight provisions of the US Commodity Exchange Act. United States, including legislation requiring measures to "prevent and detect money laundering and terrorist financing". At that time, Bloomberg assessed that this was the largest legal move by the US regulator against Binance to date.