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BNB Slides as Binance Faces Criminal Charges While Investors Eye Opportunities in BTCETF

Press Releases Crypto News BeInCrypto BNB Slides as Binance Faces Criminal Charges While Investors Eye Opportunities in BTCETF

Binance’s native token, BNB, has seen its price decline substantially since yesterday amid reports that Binance and its CEO Changpeng Zhao could face criminal charges from the U.S. Department of Justice (DOJ). According to sources, the DOJ is preparing to charge both Binance and Zhao, sending BNB tumbling as much as 9% on the news alone.

At the time of writing, BNB is trading around $230, marking a decline of over 10% in the last 24 hours. Adding fuel to the fire are rumors that Binance may need to pay a massive $4.3 billion settlement to resolve its issues with the DOJ. Should these reports prove accurate, it would constitute one of the largest fines ever levied against a crypto firm by U.S. regulators.

The one-two punch of DOJ charges and a multi-billion dollar settlement has created substantial downward pressure on BNB. As on-chain analytics firm Santiment reported, BNB’s retracement is further exacerbated by shrinking market caps across altcoins in general. Interestingly, some traders appear to be swapping their BNB holdings for FTX’s native token FTT. This could indicate a rotation out of BNB specifically and into other major exchange tokens like FTT.

Meanwhile, prominent crypto analyst LookOnChain has observed that in the aftermath of Binance settling with the DOJ, large BNB whales have been accumulating the token heavily at lower price levels. In particular, one whale added over 17,000 BNB worth $4 million to their holdings since May 10th, demonstrating a bullish outlook among major stakeholders.

However, open interest data from derivatives tracking platform Coinglass shows that BNB’s recent volatility has also fueled liquidations. Over $3.7 million in long positions for BNB were liquidated, compared to $1.6 million in shorts, underlining how leverage may be exacerbating downside moves. Options trading activity involving BNB has also increased sharply, with volumes up 68% an

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Author: BeInCrypto Team

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