- Binance Coin price has extrapolated the fall almost 2% on the day, losing the critical support at $227.70.
- The slump comes as the DoJ challenges Binance CEO Changpeng Zhao as a flight risk.
- BNB could drop 10% to the floor price at $204.60 unless bulls show resolve.
Binance Coin (BNB) price is suffering in the aftermath of the US government clamping down on the world’s largest cryptocurrency exchange and its CEO, Changpeng Zhao (CZ).
Also Read: Binance CEO CZ may not return to the UAE before sentencing
Binance CEO is a flight risk, US DoJ Says
The US Department of Justice (DoJ) has challenged CZ’s release on a $175 million bond, saying in a filing that he is a flight risk. The top criminal justice authority in the US, the DoJ argues that the risk can be managed by ensuring that the Binance executive does not leave the US.
The filing is a surprise considering that CZ voluntarily entered the US to make an appearance in court with the presentation that he was not a flight risk. The judge in charge of the case had found that CZ was not a flight risk even while residing in the UAE.
The determination reads, “Based on all the relevant facts, including Mr. Zhao’s voluntary self-surrender, his intent to resolve this case, and the sizable bail package he proposed, Mr. Zhao presents no risk of flight, even while residing in the UAE."
However, DoJ prosecutors fought the judge’s case. The bone of contention is that the potential severity of the sentence would give CZ incentive to head back to the UAE in pursuit of the country’s no extradition treaty with the US.
Judge orders CZ must remain in the continental US for now
Based on the latest report, the judge will review the decision to allow CZ to return to the UAE, with no final decision being made just yet.
It seems a decision on whether CZ can return to the UAE before sentencing has NOT been reached
— BitMEX Research (@BitMEXResearch) November 27, 2023
Today the court has decided the judge will review the decision to allow CZ to return to the UAE. No final decision appears to have been made https://t.co/B2TK6AckWG pic.twitter.com/ck8T7qFCyq
Meanwhile, CZ continues to await his sentencing in February after capitulating to the DoJ. He pleaded guilty and resigned as Binance CEO, making room for Richard Teng to take over.
Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.
— CZ BNB (@cz_binance) November 21, 2023
Binance is no longer a baby. It is…
Judge says former binance CEO Changpeng Zhao cannot leave us ahead of sentencing
Binance Coin price eyes 10% fall amid DoJ-related chaos
Binance Coin (BNB) price continues to suffer under the weight of the former CEO’s troubles with the US government, eyeing a 10% fall to the $204.60 support floor. The Relative Strength Index (RSI) is southbound, evidence of falling momentum. The Awesome Oscillator (AO) supports the outlook with a negative reading and red histogram bars.
BNB/USDT 1-day chart
On the other hand, increased buying pressure could see BNB price pull north, reclaiming territory above $247.80 within the confines of the ascending parallel channel. In a highly bullish case, the gains could extend beyond the midline of the technical formation at $260.00, breaking out to tag $280.00. Such a move would constitute a 25% climb above current levels.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Chainlink social dominance hits six-month peak as LINK extends gains
Chainlink social dominance surged to a six-month peak on Friday as LINK holders increased their activity. LINK traders started taking profits, on-chain data trackers show. LINK price added 6% on Friday, extending its gains from mid-week.
Binance helps Taiwan crack a virtual asset money laundering case, BNB sustains above $570
Binance’s Financial Crimes Compliance (FCC) department joined forces with Taiwan’s Ministry of Justice and helped resolve a case of money laundering worth NT$200 million, or $6.2 million.
Bitcoin Weekly Forecast: Is BTC out of the woods? Premium
Bitcoin price shows signs of continuing its uptrend, providing a buying opportunity between $64,580 to $63,095. On-chain metrics forecast a bullish outlook for BTC ahead. If BTC clears $70,000, the chances of resuming the uptrend would skyrocket.
XRP trades steady at $0.50 as Ripple shares plan to expand services in Africa
Ripple hovers close to $0.51 on Friday, above the psychologically important $0.50 level, as traders await the court ruling of the lawsuit against the US Securities and Exchange Commission and amid new commitments from the firm to expand its services in Africa.
Bitcoin: Is BTC out of the woods? Premium
Bitcoin (BTC) price action in the past two days has confirmed the resumption of the bull run. However, BTC needs to clear a few key hurdles before investors can go all-in.