Bitcoin and Binance Token Experience Minor Decline Following Zhao’s Release

Changpeng Zhao, the founder of Binance, was released from custody on September 27. This news coincided with a slight decline in the prices of Bitcoin (BTC) and Binance’s BNB token (BNB) as trading commenced.

As reported, Zhao and Binance maintain 71% of the approximately 146 million BNB tokens currently in circulation. Zhao personally owns about 64% of the total BNB supply, which significantly contributed to his net worth of approximately $61 billion as of June 2024, making him the 24th richest individual globally at that time. This extensive ownership has raised concerns regarding the token’s centralization.

At the time of this report, Zhao’s holdings of 94 million BNB tokens were valued at around $57 billion, showcasing a considerable drop from peak prices that exceeded $700 in June 2024.

Further analysis conducted by Gray Wolf Analytics and other financial sources indicated that 80 million BNB tokens were distributed among the original Binance team, with the company retaining around 46 million of these tokens.

Impact of DOJ Charges and Settlements on BNB Pricing

The United States Department of Justice (DOJ) announced charges against Binance and Zhao in 2023, accusing him of breaching the Bank Secrecy Act.

In a collaborative announcement involving multiple regulatory bodies, including the U.S. Department of the Treasury and the Commodity Futures Trading Commission, officials stated:

“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 trading of various cryptocurrencies.”

This prediction proved accurate, as the price of BNB surged by approximately 7% within 24 hours following the announcement of a $4 billion settlement between Binance and the Securities and Exchange Commission on November 21.

As part of this settlement, Binance was required to pay $4.3 billion, and Zhao faced an additional fine of $50 million. Furthermore, the DOJ mandated independent monitoring of Binance’s operations for the next three years, appointing the Forensic Risk Alliance for oversight.