Binance.US Loses Licenses Due to Founder’s Legal Woes

Recently, an increasing number of US states decided to withdraw or chose not to renew the money transmitter licenses of BAM Trading Services Inc., known as Binance.US, due to compliance issues and legal challenges associated with CZ Zhao.

The North Dakota Department of Financial Institutions recently announced the revocation of BinanceUS’s money transmitter license, citing non-compliance with state laws. They noted that Changpeng Zhao, who had a majority beneficial ownership and control of the company, pleaded guilty to felony charges for violating US anti-money laundering laws.

Zhao is currently serving a four-month prison sentence following Binance’s settlement with the US Department of Justice (DOJ). He admitted to breaches of the Bank Secrecy Act. As part of the plea agreement, Binance is required to pay $4.3 billion in fines and penalties, although the DOJ initially sought a three-year sentence for Zhao.

Crypto users expressed varied opinions on the sentencing. Initially, the market reacted negatively, but several analysts suggested that the CZ Zhao’s arrest impact might be minimal.

A recent price analysis showed that BNB price could hit $600 following Changpeng Zhao’s release. BNB price is experiencing a potential double-bottom reversal within a broadening wedge, boosted by the recent approval of the PFAK license for Tokocrypto in Indonesia and the anticipated release of former Binance CEO Changpeng Zhao. The Binance coin price is further supported by significant trading volume growth and regulatory milestones, raising investor confidence.

Regulatory clampdowns by global authorities typically cast a bearish shadow over crypto assets, contributing to market uncertainty. The sentencing of CZ further underscored these regulatory pressures, influencing how the crypto market perceived future stability and regulatory interventions.