Binance Coin (BNB 4.72%), the cryptocurrency that undergirds Binance's associated BNB Chain, has seen its value dip along with that of its near-namesake exchange. That wasn't much of a surprise, given that Binance's founder and CEO Changpeng Zhao (widely known by his initials, CZ) pled guilty to breaking U.S. money-laundering laws and agreed to pay a very large fine.
CZ pleads guilty in U.S. court; Binance to pay $4.3 billion
In a federal court in Seattle Tuesday afternoon, Zhao entered his plea and assented to the penalty, which will amount to a whopping $4.3 billion for Binance. The popular exchange's leader could be sentenced to as much as 18 months in an American prison. With its prominence and popularity, Binance is sure to survive, albeit almost surely under new leadership.
And BNB Chain, described by Binance as "a community-driven, permissionless, and decentralized blockchain ecosystem," will also continue. Both, however, will be under a cloud with Zhao's admission. Both he and anything Binance will be at least partially associated with criminality.
Guilt by association will fade
It's important to note that the keyword in Binance's language on BNB Chain is "decentralized." Like many coins and tokens, the blockchain is a community effort and is governed accordingly.
Yes, Binance's brand is tarnished just now. Having said that, though, Zhao's move was a sensible one that threw off a massive legal albatross hanging on Binance's back. BNB Chain won't remain guilty by association for long, and before long, BNB as a cryptocurrency will recover at least some of the ground it lost.
