BNB records a sharp drop after alleged Binance prosecution plan by U.S. authorities

The value of BNB has recorded sharp losses after it emerged that United States authorities have plans to charge the token’s parent company and crypto exchange Binance over alleged financial crimes. 

In particular, by press time, BNB, the fourth largest cryptocurrency by market capitalization, was trading at $276, recording losses of about 4% in the last 24 hours. As per Finbold data, BNB has extended its losses in the last seven days, recording a slump of about 5% on the weekly chart.

Although BNB has been weighed down by the general crypto market correction and the fallout from the FTX exchange collapse, the latest correction has come in the wake of new legal trouble facing Binance. 

Besides BNB, the outcome of the matter will likely have ramifications on the general crypto market, considering Binance status in the sector. 

Details of Binance legal trouble in the U.S. 

Indeed, a Reuters report indicated a split among Department of Justice (DOJ) officials over charging Binance for a series of violations, including unlicensed money transmission, money laundering conspiracy, and criminal sanctions violations. 

As per the report, the split has delayed the next way forward for the investigations that began in 2018. The DOJ will likely indict Binance and its executives if the charges are approved. Some options on the table include negotiating a settlement or closing the case without taking action.

However, Binance has hit back at the report noting that Reuters was attacking its law enforcement team. 

Binance defence 

According to Binance, the company has increased collaboration with regulators to fight financial crimes on the platforms. 

“Since November 2021, for example, Binance responded to over 47,000 law enforcement requests with an average response time of three days, which is faster than any traditional financial institution — some of which can take months, by which point the money has gone,” the exchange said. 

At the same time, as reported by Finbold, Binance was also at the center of another controversy over allegations of acting as a conduit for laundering $2.3 billion in illicit funds. 

It is worth noting that with previous legal troubles mounting against Binance, the company opted to reinforce its legal team. 

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