The United States Department of Justices has put a price on what is required for the world’s largest crypto exchange to settle its case, and it is no small sum. Nevertheless, the news has been seen as positive by traders and investors who are loading up on BNB. On November 20, Bloomberg reported that the […]
The United States Department of Justices has put a price on what is required for the world’s largest crypto exchange to settle its case, and it is no small sum. Nevertheless, the news has been seen as positive by traders and investors who are loading up on BNB.
On November 20, Bloomberg reported that the US Justice Department is seeking more than $4 billion from Binance Holdings. The payment is part of a proposed resolution to an investigation that has dragged on for years.
Binance Off The Hook?
According to the report, negotiations between the DoJ and Binance include the possibility that its founder, Changpeng ‘CZ’ Zhao, would face criminal charges in the US.
The Justice Department has been probing the company since 2020 for alleged money laundering, bank fraud, and sanctions violations, it added.
Moreover, the agreement would allow Binance to continue operating in the US. This would help avoid a major fallout and black swan for crypto markets but still punish Binance.
Additionally, it would be one of the largest settlements in crypto history if the terms were agreed on. There was no response from Binance or CZ on his X feed at the time of writing.
Matt Walsh, founding partner at crypto venture firm Castle Island Ventures, told Bloomberg:
“A settlement with a monitoring provision in place could be a compromise that protects investors and allows Binance the option to evolve into a more institutional and compliant future direction.”
The DoJ is angling for another major victory in regulating crypto exchanges. This comes shortly after convicting Sam Bankman-Fried of fraud and conspiracy charges earlier this month.
However, unlike SBF, CZ currently resides in the United Arab Emirates, where there is no extradition treaty.
The DoJ probe is separate from the two lawsuits filed this year by the Securities and Exchange Commission and the Commodity Futures Trading Commission in America’s ongoing war on crypto.
BNB Price Moves
Regardless, crypto traders have been buoyed by the possibility of a resolution to one of Binance’s big headaches.
BNB prices jumped more than 7% after the news broke around 12 hours ago. The exchange asset is currently trading at $264, its highest price since early June.
Binance Coin prices slid 33% in the months that followed the SEC lawsuit. As a result, the asset hit its lowest price since mid-2022, touching $205 in mid-October.
Moreover, BNB remains 61.6% down from its peak price of $686 in May 2021.
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