In a significant development, the US Department of Justice (DOJ) is reportedly seeking over $4 billion from Binance. This sum is part of a proposed resolution to conclude the cryptocurrency exchange’s long-standing criminal case. Bloomberg’s report suggests that resolving the probe into alleged money laundering, bank fraud, and sanctions violations is at the core of this proposition.
Ongoing Scrutiny and Potential Charges
Binance, a leading crypto exchange, has been under continuous observation by US regulators. The DOJ had been contemplating charging the platform with fraud, considering the potential repercussions on the industry and the risk of a bank run. The DOJ’s decision would significantly impact Binance, which has been embroiled in legal challenges, including a lawsuit from the Commodity Futures Trading Commission (CFTC) accusing it of deliberately evading US laws.
Impact on Binance’s Founder
The resolution plan also implicates Binance’s founder, Changpeng Zhao. Zhao, currently based in the United Arab Emirates (UAE) — a nation without an extradition treaty with the US — faces criminal charges in the proposed settlement. Despite the lack of an extradition treaty, this does not preclude Zhao from voluntarily traveling to the US.
As of now, Binance has not issued any statements regarding the proposed resolution. However, reaching an agreement of this magnitude would mark a pivotal turn in the ongoing scrutiny faced by the exchange in the US. The resolution, if finalized, would conclude years of investigation into the cryptocurrency platform.