Bitcoin, BNB Recovery Amidst Binance CEO’s Guilty Plea

As the likelihood of a U.S. spot-based bitcoin ETF increases due to Binance CEO Changpeng “CZ” Zhao’s guilty plea and criminal settlement, Bitcoin (BTC) and BNB recover from their losses on Tuesday.

BTC slipped 4.5% to $35,700 on Tuesday and is trading near $36,400.

Historical data indicates that BNB rose from $223 to $234 in trading. The two currencies fell 3.3% and 11.5%, respectively, over twenty-four hours following Binance’s $4.3 billion settlement on Tuesday for sanctions and money-transmitting violations.

Binance founder CZ reportedly pleaded guilty and resigned as CEO, representing one of the most severe corporate sanctions in history.

Binance relied unlawfully on American customers for trading activity and revenue, according to recently disclosed documents.

The federal complaint exposes years of deliberate obfuscation and compliance failures to conceal these vital but off-limits individuals.

CZ’s attorneys stated that his sentencing will be postponed by six months, and if the postponement is less than eighteen months, he will waive his right to appeal.

Some traders believe that the demise of CZ could facilitate the SEC’s approval of spot bitcoin ETFs in the coming months.

“The industry’s compliance with TradFi regulations may have increased expectations for a Bitcoin ETF to one hundred percent due to this plea bargain.”

Furthermore, the whitewashing of this industry will strengthen the case for institutional actors to adopt Bitcoin and transform it into a secure haven asset for investors.

Leverage traders may have suffered losses due to the volatile prices on Binance and CZ.

Coinglass data indicates that $110 million in long Bitcoin positions were liquidated in the twelve hours following the announcement of the settlement, compared to $37.2 million in short Bitcoin positions.

In the past hour, longs were liquidated for $111,000, and shorts were sold for $4.26 million.

Coinglass documented the liquidation of $3.73 million in long wagers and $1.61 million in short positions for BNB, which exceeds the stake in Bitcoin.

Open interest in options for BNB increased by 29% to $3.47 million, while the volume of options increased by 68% to $2.41 million.

Indicies reports that the UNI token of Uniswap is up 1.6%, while the dYdX native token of the decentralized exchange is up 7%.