Bitcoin (BTC-USD) is down just over 1% in Wednesday afternoon’s trading, as Binance’s saga of investigations from federal officials has finally come to a halt. Now, with a new CEO in place, a new mandate has come along with him. As part of the $4.3 billion settlement, former CEO Changpeng Zhao is out at Binance.
His replacement, Richard Teng, now has serious problems facing him. How in the world can he keep anywhere close to the 150 million users Binance enjoys now in play while U.S. regulators are increasingly breathing down its collective neck? Meanwhile, Changpeng Zhao was an extremely high-profile CEO; he can’t just be quietly buried and forgotten about suddenly. All these issues are waiting on Richard Teng’s plate as he takes charge. Indeed, trouble may be starting; reports note that users have already pulled $805 million in crypto from Binance. Some reports put that number closer to $1 billion currently.
Binance Might be a “Too-Big-to-Fail” Operation
It only gets worse from there. With Changpeng Zhao facing 10 years in prison—though 18 months is more likely, reports note—and around $200 million in fines personally, seeing Binance as anything more than a criminal front is likely to be difficult. But even with a $4.3 billion fine leveled against the company itself, some regard that as a good sign. Because it’s still running. That fine is manageable, though not the best outcome. Some say this is a sign the government considers Binance a “too-big-to-fail” operation, one whose disappearance might torpedo a whole tax base. So there is some possibility things could turn around if Binance can win back market share and keep it in the face of all this.
Which Cryptocurrencies are a Good Buy Right Now?
A look at the last five trading days in Bitcoin shows that it’s actually up for that period, even if it’s slightly down today. In fact, it’s clear that Bitcoin prices are taking Binance’s loss in stride, slipping only fractionally in today’s trading and showing there’s a whole lot more to the Bitcoin market than the potential loss of one exchange.
