The price of BNB +2.86% fell on Tuesday after reports first emerged that Binance CEO Changpeng 'CZ' Zhao planed to step down as part of a plea deal with the U.S. Department of Justice. Details of the deal, which will also see the crypto exchange pay more than $4 billion, were later confirmed in court filings.
The token, used to pay for transaction fees on the world's largest cryptocurrency exchange, has posted a drop of over 6% from levels seen a day earlier. BNB was changing hands for $242.91 at 2:39 p.m. in New York, according to The Block data.
The price decline comes as an abrupt U-turn for the token after it rallied to a yearly high of $266 on a Monday report that the DOJ was seeking to resolve its long-running investigation into Binance by issuing the company with a hefty $4 billion penalty.
According to court filings, Zhao will plead guilty to violating and causing a financial institution to violate the Bank Secrecy Act. He'll agree to a $50 million fine.
The Department of Justice will hold a press conference at 3:00 p.m. ET on Tuesday.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.