Binance C.E.O “CZ” Steps Down: Will BNB nosedive?

Changpeng Zhao “CZ,” the founder of Binance, has stepped down from the C.E.O position and pleaded guilty to money laundering violations.

This comes as part of the landmark USD 4.3 billion settlements (penalties and forfeitures) with various U.S agencies including the Department of Justice (DOJ), the Treasury Department, and the Commodity Futures Trading Commission (CFTC).

The ruling marked the end of years-long court battle into Binance anti-money laundering claims by multiple regulatory agencies. In a public statement on X, formerly Twitter, CZ wrote, “I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself”.

He acknowledged his mistakes stating that his actions were for the best interest of Binance and himself. He further reckoned that the poor measures were as a result of poor controls at inception. Despite his resignation as the C.E.O, CZ remains the largest shareholder and will be available for consultation.

How did Binance coin and cryptocurrencies react to Changpeng Zhao “CZ” resignation?

Following the news of Changpeng Zhao’s “CZ” resignation, Binance Coin (BNB) price plummeted from a high of $260 to a low of $232 as of writing.

Bitcoin, Ethereum, Dogecoin, and a few other coins saw a similar bearish drive; however, the prices successfully regained their previous trading prices.

There is a lot of uncertainty with Binance coin at the moment, coupled by the reduced trading volume at the exchange and Binance coin. Its price trajectory can only be foretold by the adverse market sentiment. Will it continue with the recent October 2023 to date bullrun?

What’s next for Binance?

Changpeng Zhao announced the exchange’s next C.E.O— Richard Teng— a figure in the crypto world with over 8.5 million followers on X.

Changpeng Zhao reiterated that user funds are safe (SAFU) despite the bearish price reaction.

“I am proud to point out that in our resolutions with the U.S. agencies they:

1. do not allege that Binance misappropriated any user funds, and
2. do not allege that Binance engaged in any market manipulation.”

Despite the reassurance for CZ, the news had a shock on Binance’s business with several banks instituting restrictions to Binance US. Zhao’s fate is unknown at the moment with only a bail set at USD 175 million and possible sentencing in months to come.