- The Justice Department seeks a record $4 billion to settle a case with Binance.
- Binance CEO Changpeng “CZ” could face criminal charges.
Binance is reportedly discussing with the U.S. Justice Department about settling its long-standing case with the regulators. The Justice Department could demand more than $4 billion for the case settlement. The talks are expected to end in the coming weeks.
Binance, the world’s largest exchange, has been under the U.S. radar over alleged market violations. Some of the accusations against the entity include money laundering, violations of the U.S. sanction law, and bank fraud.
In June, the SEC charged Binance with violating U.S. security laws and misappropriation of customer funds. In March, the Commodity Futures Trading Commission accused the exchange of violating market trading rules. Despite the potential settlement, CEO Changpeng “CZ” Zhao could face criminal charges.
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Largest Settlement In Crypto History
If Binance agrees to the U.S. fine of more than $4 billion, it would constitute the most significant crypto settlement ever.
Meanwhile, the development could be positive for Binance token (BNB) and the crypto sector. A satisfactory settlement clears the uncertainty over the future of Binance, which has been jeopardized in the recent past.
Anil Lulla, co-founder of crypto research Delphi Digital, commented on the potential settlement,
“It was an overhang in the industry. And while $4 billion is not an insignificant number, it’s probably a small price for Binance to pay to move forward from this.”
Immediately after the news, BNB surged, signaling optimism around the potential clearance of Binance’s allegations. However, it is still unclear what other conditions may accompany the penalty for the embattled crypto exchange.
