Binance co-founder CZ sacrificed himself in the Binance vs US regulators battle, for the better development of Binance’s crypto business without any big legal hurdles.
On 21 Nov 2023, In a settlement agreement between US authorities & Binance exchange, Binance co-founder Changpeng Zhao (CZ) was found guilty in the SEC & CFTC charges.
As a part of the agreement, Zhao stepped down from the Binance CEO role as well as paid $50 million as a fine. With this settlement agreement, the Binance Co-founder helped to terminate a long-term investigation against Binance by the US authorities Justice Department, the Treasury Department, and the Commodity Futures Trading Commission (CFTC).
Here people need to understand that the $50 million fine was only for CZ to remain away from the custody of US authorities and a separate fine by the Binance exchange that is $4.3 billion will be separately released by the exchange to the US authorities.
Following this settlement agreement, CZ admitted that it was not a painless decision but confirmed that it was a good decision for the future of Binance exchange.
Following all these bad situations with the Binance exchange, the Binance customers withdrew nearly $1 billion worth of funds from the exchange and the Binance Coin (BNB) crashed by 9% over the last 24 hours.
JPMorgan analyst Nikolaos Panigirtzoglou shared his personal opinion on this settlement and admired the move by Zhao. He said that settlement was a good decision for the positive development of this innovative sector.
Strangely amid this negative development with the Binance exchange, the trade price of FTX token (FTT), the native token of the bankrupt crypto exchange FTX, surging rapidly. The current trade price of FTT is 32% higher over the last 24 hours trade price.
People need to understand that the FTT token has no use case and also in the future it will not be useful if FTX will again restart its services. Also there is a huge chance that the FTX bankruptcy team may liquidate all the FTT holdings to pay the creditors. In short, it is very risky to trade with FTT coins.