Binance's Legal Trouble Didn't Trigger Market Collapse

When SBF filed for bankruptcy for FTX, it not only affected small investors but also had repercussions for large organizations. Galois Capital closed down, Sequoia Capital got stuck with $213.5 million, and Multicoin Capital found itself entangled with 10% of its total assets. The actions of SBF and the FTX management team have shaken the confidence of both investors and regulatory authorities in the cryptocurrency market.

Meanwhile, Binance and CZ are facing allegations of violating anti-money laundering laws. The accusations involve Binance employees assisting and illegally onboarding U.S. users onto the international platform, along with transactions related to terrorist groups and money laundering.

In contrast to FTX, the Department of Justice examined all of Binance’s facilities and found no serious errors that could lead to insolvency or another collapse in the cryptocurrency industry. Despite users withdrawing over $1 billion in assets from the platform within 24 hours of CZ facing charges, Binance continues to operate normally. Although Binance had to pay a hefty fine of $4.3 billion, it still maintains its ability to make payments and has enough financial resources to continue operating.

According to Conor, a manager at Coinbase, Binance Corporate owns assets valued at $6.35 billion, including $3.19 billion in stablecoins. These figures do not include cash and unreported electronic wallets from Binance’s Proof of Reserves report.

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CZ’s decision to take a step back makes sense—by paying the fine and temporarily stepping down as CEO, Binance can continue to operate and grow.

Instead of engaging in a direct confrontation with the authorities, completely banning Binance would eliminate any chance for a fresh start.

Indeed, CZ took a clever move; he admitted guilt to ensure the survival of his brainchild, Binance. At most, he might receive a few years of imprisonment, but his digital assets will remain intact.

If he deliberately refuses to admit guilt, the U.S. government could dismantle Binance and seize his entire portfolio of digital assets. Admitting guilt offers a strategic move to safeguard his digital wealth. As well as the SAFU of Binance

~> The crypto assets are still in “Safe” at the moment.

Perhaps he’s just stepping down from the CEO position and still pulling the strings from behind the scenes. This news isn’t necessarily negative; in fact, it could be seen as positive for the market, so the price of BTC is experiencing only a minor fluctuation.

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