According to a JPMorgan representative, the Binance settlement with US authorities represents a new beginning for the crypto exchange and its sector. The company believes that removing this regulatory uncertainty would benefit Binance's operations. Not only it, but it will also help the broader crypto market, lowering a potential systemic risk.
Binance and its co-founder Changpeng "CZ" Zhao pleaded guilty to anti-money laundering and US sanctions violations. They agreed to pay $4.3B in one of the highest corporate settlements. Zhao was fined $50M, forced to resign as CEO. CZ was released from custody after paying a $175M personal recognizance bond.
Despite the significant setback, Zhao voiced optimism. He believes the setback may bring about the required modifications for future advancements. Binance's new CEO, former regulator Richard Teng, reassured users about the company's financial soundness, security, and long-term viability.
Binance has seen over $1B in withdrawals in the last 24 hours as a result of the settlement news, while competitor exchanges have seen an influx.
