Ever since the news on Changpeng Zhao’s guilty plea in the United States federal courts, many in the crypto trading community have poured their anguish, sorrow and disappointment with the event. After all, CZ (his famous alias) has been an icon and idol for the crypto community.
His guilty plea and Binance’s hefty US$4.3 billion fine finally closes a long overhanging chapter in the litigious crypto world. For those in the know, the Department of Justice has been investigating Binance for several years and many crypto proponents are keen to know what is the outcome. When the settlement was announced, it yielded a huge sigh of relief. Think of it this way, it could have gone much much worse.
Imagine the DOJ going full-on in prosecuting CZ and ordered a shut down of Binance. Now, this would be extremely detrimental to the entire crypto community. Even though Binance has lost market share in the last one year, it is still a favourite venue for many traders.
CZ’s plea included a clause that would not have him spend more than 18 months in jail, if he ever would be sentenced to such in the first place. On the grand scheme of things, the current settlement is a much lesser evil.
Alas! The crypto community can move on, barring the last remaining SEC’s lawsuit. But, the big elephant in the room has finally been cleared. We are talking about the DOJ.
We think this is a bullish development for the crypto market. Naturally, a knee-jerk reaction can be expected from this settlement, but smart money will understand the very basis of this settlement that would create a preamble for a potential crypto bull run to continue and sustain.
Almost immediately after the resignation of CZ as CEO of Binance, a Singaporean by the name of Richard Teng assumed this role. Mr Teng hails from a strong regulatory background and should be able to steer Binance into a crypto exchange that protects investors and works closely with regulators around the world. It would herald a start to welcoming the crypto trading world into the mainstream financial system.
We believe Binance should be in good shape going forward, regardless of what will happen to CZ.
Any information provided in this article is not intended to be a substitute for professional advice from a financial advisor, accountant, or attorney. You should always seek the advice of a professional before making any financial decisions. You should evaluate your investment objectives, risk tolerance, and financial situation before making any investment decisions. Please be aware that investing involves risk, and you should always do your own research before making any investment decisions.