After the FTX collapse, the crypto markets have already taken a major hit. And now, if the largest exchange globally (Binance) collapses, it could be a major problem for the entire industry. But that might very well be happening because Binance CEO might be charged with money laundering, which might engulf the entire company. Many top executives of the company might also be involved with the money laundering charges.
CZ Zhao might be in trouble
Binance might not have been trouble, but the FTX debacle just shook the entire industry, and this probe that started in 2018 has now become the cover of many news articles. It’s being reported that the CEO of the exchange and many of its top executives are involved in a money laundering and sanction violation investigation. The DoJ in the US might press charges on the company CEO right now or take some more time to get more evidence.
The money laundering probe is being handled by MLARS (Money Laundering and Asset Recovery Section), the National Cryptocurrency Enforcement Team and the US Attorney’s Office for the Western District of Washington.
Binance says otherwise
While Reuters has been saying that CZ could be in trouble, he says, “Ignore FUD. Keep building!” He also said that Reuters has it all wrong again. It seems CZ is quite confident that he hasn’t messed up anywhere and that even their exchange has followed all laws.
What if things go wrong?
Binance’s CEO is facing a lawsuit, and the platform’s collapse might crumble the crypto industry. Bitcoin is already trading below $20k; if the largest crypto platform goes under, that might push it below $10k. It’s difficult to say how long it will take for Bitcoin to recover from that. For the first time, we might even see Bitcoin making a new all-time during the halving that is supposed to happen in 2024.
However, it would be good if the industry is cleaned up and built again from the bottom up. Right now, there are too many frauds being orchestrated, even by the biggest entrepreneurs.
What are your thoughts on the fact that Binance CEO might be charged with money laundering? And do you think this will break the crypto industry? Let us know in the comments below. And, if you found our content informative, share it with your family and friends.
Also Read: Scam Bankman Fried wants to start a new business to pay FTX victims.
