Binance founder Changpeng Zhao was released from custody on September 27, 2024, slightly affecting the prices of Bitcoin and Binance’s BNB token. Here’s a look at Zhao's holdings, centralization concerns, and market reactions.
Zhao’s BNB Holdings and Centralization Concerns
According to a Forbes report, Zhao holds about 64% of all BNB tokens, raising concerns about centralization. In June 2024, his net worth was estimated at $61 billion, ranking him 24th on the global rich list. Zhao’s 94 million BNB tokens are now valued at $57 billion, a significant drop from June 2024 when BNB was priced over $700.
An analysis by Gray Wolf Analytics and Forbes revealed that 80 million BNB tokens were originally allocated to the Binance team, with the company still holding around 46 million tokens.
Impact of DOJ Charges and SEC Settlement on BNB Price
In 2023, the U.S. Department of Justice (DOJ) charged Zhao and Binance for violating the Bank Secrecy Act. These charges affected the cryptocurrency market, as Binance is the largest crypto exchange globally. Concerns about Binance’s legal liabilities impacted BNB trading.
Source: U.S. District Court for the Western District of Washington at Seattle
Following a $4 billion settlement between Binance and the Securities and Exchange Commission (SEC) on November 21, 2023, BNB saw a 7% price increase within 24 hours. As part of the settlement, Binance paid $4.3 billion, and Zhao was fined $50 million. Binance will be monitored for three years by the Forensic Risk Alliance.
As of writing BNB was trading at $610.98 with 1.21% Increase in last 24 Hours as per Coinpedia Markets data
What’s Next for BNB?
With regulatory challenges and Zhao’s release, the future of BNB remains uncertain. To stay updated on BNB price trends and future predictions, check out our detailed BNB Coin price prediction article for more insights.
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