According to Bloomberg sources, the U.S. Department of Justice (DOJ) is in negotiations with Binance to resolve criminal allegations related to bank fraud, money laundering, and violations of financial sanctions. Specifically, Binance would be fined $4 billion, marking one of the largest penalties ever in a cryptocurrency case. In return, U.S. authorities would halt their investigation into the exchange, allowing Binance to resume normal operations. However, Binance’s CEO, Changpeng Zhao, would still face charges.
With such a substantial fine, the DOJ believes that the $4 billion penalty is appropriate to allow Binance to continue its operations, avoiding prosecution and the risk of destabilizing the cryptocurrency industry.
The DOJ is expected to make an official announcement at the end of November.
It’s worth noting that the U.S. Department of Justice has been investigating Binance since 2020 on allegations of money laundering, but no formal charges have been filed to date.
In addition to the DOJ, Binance is also facing legal actions from two other U.S. financial regulators: the Commodity Futures Trading Commission (CFTC) filed a lawsuit in March 2023, and the Securities and Exchange Commission (SEC) filed a lawsuit in June 2023. These lawsuits involve serious allegations of misconduct in managing and listing cryptocurrencies considered securities.
Binance has denied these allegations, but the legal troubles have disrupted its operations in the United States.