- BNB price jumped over 5% to $254 after report that DOJ seeking $4 billion from Binance to resolve money laundering and fraud investigation.
- DOJ probe centers on whether Binance violated anti-money laundering laws and sanctions policies; a settlement could allow Binance to continue operating.
- Bitcoin rose 2% to $37,600 but struggling to break $38k amid uncertainty over Fed policy and delays in approving a spot bitcoin ETF.
The price of BNB, the native token of cryptocurrency exchange Binance, rose sharply on Monday following a report that the U.S. Department of Justice is seeking $4 billion from the exchange to resolve its ongoing investigation. The DOJ has been probing Binance over allegations of money laundering, bank fraud and sanctions violations.
Binance Token Rallies Over 5%
BNB gained over 5% in the last 24 hours, trading around $254 on Monday afternoon New York time, according to CoinGecko. It had jumped as high as $258, its highest level since early June. The token’s price spiked after Bloomberg reported the DOJ is asking Binance to pay $4 billion as part of a deal that could end the criminal probe of the world’s largest crypto exchange.
Details of the DOJ Investigation
The DOJ investigation centers on whether Binance violated U.S. anti-money laundering laws and sanctions policies. As part of a potential resolution, Binance CEO Changpeng Zhao could face criminal charges, according to Bloomberg. An agreement to settle could allow Binance to continue operating and avoid further damage to the broader crypto market. Bloomberg reported an announcement regarding the probe could come later this month.
Bitcoin Trades Sideways Amid Macro Uncertainty
Bitcoin rose 2% on Monday to around $37,600 but has struggled to break out above $38,000 recently. According to analysts, the largest cryptocurrency by market capitalization may continue trading in a range for weeks absent positive catalysts. Investors are cautious amid uncertainty over the Federal Reserve’s next policy moves and delays in approving a spot bitcoin ETF. While inflation has cooled, the Fed is likely to remain hawkish at its December meeting. Until the Fed pivots dovishly or regulators approve a spot bitcoin ETF, bitcoin may stagnate near current levels.
The DOJ’s pursuit of a multi-billion dollar fine against Binance gave BNB a boost Monday. Meanwhile, bitcoin appears hampered by macroeconomic headwinds and a wait-and-see approach from investors. The cryptocurrency market awaits the next major catalyst that could drive prices out of their recent ranges.