BNB Token Surge Enriches Binance Founder – CZ In US Jail

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BNB token, which is linked to Binance and its incarcerated founder Changpeng ‘CZ’ Zhao, experienced a significant surge to a record high in the first week of CZ’s four-month jail sentence in the United States. The token price rally is somewhat linked to the jail term, underscoring CZ as the richest person to serve a jail term in a U.S. federal prison.

BNB Token See Sideways Action 

The former Binance founder kickstarted his four months sentence on Tuesday as he reported to a California prison. Only two days after, BNB token saw a jump to $717.48. According to CoinGecko data, this caused the market capitalization of the token to reach as high as $109 billion. The token is currently priced at $676.50 with a 0.91% decrease within the last 24 hours. 

Even with this recent decrease, it is worth noting that the token has doubled in price since the beginning of this year. This trajectory is a reflection of Binance’s fortune. Between January and this time, the total value of assets on the renowned trading platform has seen a sizable jump from around $80 billion to $125 billion. 

Multiple Use Cases For BNB Token 

For an exchange that is faced with regulatory debacle, this rise further establishes its dominance in the crypto space. The BNB token is utilized for different purposes including as a token used for settlement fees on BNB Smart Chain. Binance offers trading-fee discounts to investors who hold BNB. 

Kaiko analyst Dessislava Aubert claims that a glimpse of the BNB price rally was seen a while ago in the derivative market trading patterns from late May, with spot demand starting to pick up in June and buying consistently outpacing selling between June 2-5.

Binance Founder and the Four-month Jail Sentence 

Meanwhile, CZ is being incarcerated for violating U.S. money laundering laws. Zhao resigned as Binance CEO a few months ago and pleaded guilty to the felony charge as part of a settlement with the U.S. Department of Justice (DOJ).

According to Kevin Mosley for the prosecution, “Incarceration is necessary to reflect the seriousness of the offense.” He later said, 

“A probationary sentence here will incentivize others to break the law and to do it in the largest scale possible.”

 

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