BNB Dips Despite Release of Binance Founder and Former CEO Changpeng Zhao from Prison

BNB the native cryptocurrency of the Binance Ecosystem dipped even after the release of the founder and former CEO of Binance from prison.

The native cryptocurrency of the Binance ecosystem, BNB, has seen a slight decrease in value despite the recent release of the founder and former CEO of Binance, Changpeng Zhao (CZ), from prison.

At the time of writing, BNB is trading at $595, having lost 0.8% in the last 24 hours.

Despite CZ's ownership of a significant portion of the BNB token allocation, its price has not seen a substantial boost following his release.

CZ reportedly owns a vast amount of BNB tokens, with recent estimates placing his net worth in the range of $61 billion, making him the 24th richest person in the world, according to Forbes.

The news of CZ's prison release was widely expected to positively impact the value of the tokens within his sphere of influence.

However, BNB's price has declined compared to a few months ago, when it was trading at around $700 per token.

With BNB currently priced at $595, CZ's stash of 94 million BNB tokens would be valued at roughly $57 billion.

A 2024 analysis by Forbes in collaboration with Grey Wolf Analysis revealed that the original Binance team was allocated 80 million BNB tokens, out of which they currently retain 46 million tokens.

Among the notable developments related to BNB was a settlement agreement reached in 2023 between Binance Ltd and the United States Securities and Exchange Commission (SEC) for $4 billion, over allegations of violating US securities laws.

Following the news of the settlement, the price of BNB surged by 7% within 24 hours.

However, the recent development regarding CZ's prison release and its anticipated positive effect on the asset's price has not yet materialized to the extent that was expected.

Previously, US authorities had encountered difficulties in charging CZ directly due to his lack of presence in the United States.

In 2023, the US Department of Justice (DOJ) announced charges against Binance and Zhao, alleging that CZ violated the Bank Secrecy Act.

The filing was a joint effort between the US Department of the Treasury Office of Foreign Assets Control, the US Department of the Treasury Financial Crimes Enforcement Network, and the Commodity Futures Trading Commission.

“While Binance is not a publicly traded company, Binance is the largest cryptocurrency exchange in the world, and news related to Zhao and Binance’s criminal and civil liability is likely to have a significant effect on the trading of various cryptocurrencies,” the three government regulators said in a statement.

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