As we reported yesterday as Bitcoinsistemi.com, CZ, the CEO of the cryptocurrency exchange Binance, accepted his crime and agreed to pay a fine of 50 million dollars, while Binance will pay another 4.3 billion dollars.
CZ's sentence was suspended for six months and he faces a maximum prison sentence of 10 years. CZ agreed to waive his right to appeal if the sentence did not exceed 18 months.
Prior to the deal, on-chain data revealed that Binance transferred 3.9 billion USDT between its wallets. Despite the hefty fines, US agencies did not accuse Binance of embezzling any user funds, and Binance was not alleged to have engaged in any market manipulation.
According to Matrixport analyst Markus Thielen, the deal is a very positive outcome for CZ and Binance. With CZ resigning and the fine being lower than the previously feared $10 billion, Binance is likely to remain one of the top three exchanges for the next 2-3 years, according to the analyst.
More exchanges are expected to strengthen their compliance and become part of the tracking sharing agreement, which will make it easier to approve spot Bitcoin ETFs in the United States, according to Thielen. There will likely be pressure to 'right-size' Binance, which has 6,000 employees.
According to Matrixport, 2024 will likely be another active year for Bitcoin as the macro outlook continues to be an advantage, along with demand from institutions. CZ could come back during the next bear market in 2026.
*This is not investment advice.
