Today in Markets

Crypto Markets Unfazed by DOJ

A record fine and criminal charges against a crypto main character didn't cause market damage
Nov 21, 20231 min read

Crypto shrugs off DOJ: The DOJ probably had the opportunity to take a Binance kill shot, but it didn't. It instead levied a hefty fine that Binance can likely afford while forcing CZ to step down and face criminal charges while still holding onto his ownership. BNB barely budged and the crypto market sighed in relief.

The DOJ is getting ahold of some cash ahead of the Black Friday shopping season. It's $4.3 billion fine against Binance stands as one of the largest of all time, but with Binance's considerable war chest, it appears they won't have to liquidate any holdings to scrounge up the fine.

The DOJ aggression teamed with the SEC's sweeping lawsuit against Kraken show that regulators aren't satisfied with the enforcement to date and want to appear tough on the industry no matter how far-fetched their reasoning is at times.

We're likely in a very different situation than when U.S. authorities forced Arthur Hayes to step down from BitMEX, a move that led to a drastic drop in its market share. Still, aggressive regulation is much less novel these days and Binance has been under the regulator gun for years now, hence the BNB native token dropping just 6% after an announcement this significant.

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

Account Light mode Log Out