<p><strong>Recently, Binance has reached an agreement valued at over $4 billion to drop investigations conducted against it by the U.S. Department of Justice (DOJ). An almost identical deal, again involving Changpeng Zhao, the former CEO of Binance, was concluded according to the latest news. This time, with the Commodity Futures Trading Commission (CFTC). The deal has implications.</strong></p>
<h2 id="h-an-agreement-with-the-cftc-obliges-binance-to-take-actions">An Agreement with the CFTC Obliges Binance to Take Actions</h2>
<p>According to recent information, there has been a development in the legal case that pits crypto exchange Binance against the Commodity Futures Trading Commission (CFTC). The two parties have reached an agreement that imposes severe sanctions on the exchange, as well as on its former leader, Changpeng Zhao.</p>
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<p>Therefore, Binance will have to pay a fine of $2.7 billion. This sum includes the restitution of $1.35 billion in transaction fees deemed ill-gotten. The remaining $1.35 billion represents a penalty to be paid to the CFTC. As for Changpeng Zhao, he incurred a civil fine of $150 million.</p>
<p><a href="https://www.cftc.gov/PressRoom/PressReleases/8837-23" target="_blank" rel="noopener noreferrer nofollow">These sanctions</a> come to punish the former CEO’s decisions to launch Binance into the derivatives market, in contempt of U.S. laws. This development can also be interpreted as additional pressure for Binance to rigorously comply with regulatory rules if it wants to continue to exist.</p>
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     <p lang="en" dir="ltr">US Court approves settlement between <a href="https://twitter.com/hashtag/Binance?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Binance</a> and <a href="https://twitter.com/hashtag/CFTC?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#CFTC</a> <a href="https://t.co/eg7DygmACo" rel="noopener noreferrer nofollow">pic.twitter.com/eg7DygmACo</a></p>— Nik Crypto (@nikitacryptoman) <a href="https://twitter.com/nikitacryptoman/status/1737007595334885495?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">December 19, 2023</a>
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 <figcaption class="wp-element-caption"><em>U.S. justice validates the agreement between Binance and the CFTC</em>
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<h2 id="h-what-are-the-consequences-for-binance">What Are the Consequences for Binance?</h2>
<p>The question is worth asking, especially given the financial situation of Binance, which has continued to worsen in recent months. This has had direct consequences on the market share of the firm, which has also particularly eroded.</p>
<p>Although still the market leader in exchanges with just over 50% market share, Binance is at risk of losing its position. A spot that could be claimed by competing exchanges such as Coinbase, among others.</p>
<p>In the current state of affairs, it is not possible to say precisely what the payment of a $2.7 billion fine represents for Binance. A lesser evil, one is tempted to say compared to a long and costly trial, and to a credibility somewhat more tarnished!</p>
<p>However, added to the $4.3 billion recently imposed by the DOJ, one can imagine that it cannot be without consequences for Binance. What is certain is that this development lends a bit more weight to the projections seeing the crypto exchange lose its leadership in 2024.&nbsp;</p>

Binance at a crossroads!

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