Binance may reportedly shell out a settlement fine of over $4 billion to the United States Department of Justice (DOJ) to resolve a lengthy investigation into its alleged violation of American anti-money laundering laws and involvement in evading US sanctions against Iran and Russia.
This potential settlement, if reached, would constitute the largest-ever penalties in a criminal cryptocurrency case, according to a recent Bloomberg report.
The DOJ’s scrutiny of Binance, which began in 2018, is one of the most extensive investigations into a cryptocurrency company by the Justice Department. The allegations include aiding money laundering activities and sanctions violations. The reported settlement amount is seen as a crucial element in ongoing negotiations between Binance and the DOJ, aiming to strike a balance that allows the exchange to continue its operations.
According to Bloomberg, sources familiar with the matter revealed that Binance has sought to minimize its exposure in any settlement and has pushed for a deferred prosecution agreement. Under such an agreement, the Justice Department would file a criminal complaint against Binance, but prosecution would be deferred as long as the company complies with specified conditions.
The reported negotiations also include the possibility of Binance’s founder, Changpeng Zhao, facing criminal charges. While the DOJ has advocated for a broad leadership change within the company, it remains unclear whether other Binance executives would face charges besides Zhao.
The agreement is perceived as a strategic move to avoid the potential negative repercussions for markets and cryptocurrency holders that could result from a protracted legal battle.
Binance has been under increased scrutiny globally, particularly in the US, where it is subject to legal and regulatory actions from various agencies. These include a lawsuit from the Securities Exchange Commission (SEC) in June 2023 and allegations from the Commodity Futures Trading Commission (CFTC) in March of the same year.
Despite actively cooperating with regulators’ probes, Binance has contested the lawsuits and expressed disappointment with the enforcement actions.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
