The U.S. Justice Department (DoJ) is reportedly seeking a penalty of over $4 billion from Binance. This demand is part of a proposed settlement to conclude a prolonged investigation, as reported by Bloomberg News. The ongoing negotiations between the DOJ and Binance are also considering the possibility of criminal charges against Changpeng Zhao (CZ), the founder of the cryptocurrency exchange, in the United States.
This resolution, which could result in a hefty fine for Binance, marks a crucial juncture in a high-stakes investigation that investors and industry observers have closely watched. The outcome of this case is expected to influence investor sentiment towards the crypto sector significantly. The cryptocurrency industry has faced challenges in recent times, highlighted by several high-profile failures, including the bankruptcy of FTX, previously a major competitor to Binance.
According to Bloomberg, an official announcement regarding the resolution of this case with Binance could be made by the end of the current month. In December 2020, federal prosecutors requested the company to hand over internal records related to its anti-money laundering procedures and communications involving Zhao, as reported by Reuters.
This DoJ probe is part of a series of legal and regulatory challenges faced by Binance, the world’s largest crypto exchange, in the U.S. The U.S. regulators SEC and the CFTC filed lawsuits against Binance and CZ, accusing them of devising a scheme to circumvent U.S. federal securities laws. Binance has refuted these allegations and stated its intent to defend its platform strongly.
