BNB price loses key support as US DoJ calls Binance CEO Changpeng Zhao a flight risk
- 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.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
