The US Department of Justice is demanding more than $4 billion from the largest cryptocurrency exchange Binance as part of a proposed settlement of a multi-year investigation into the site, reports RBC Crypto with reference to Bloomberg.
According to people familiar with the negotiations between the Justice Department and Binance, the department accepts that Binance CEO Changpeng Zhao will face criminal charges in the United States as part of an agreement to resolve an investigation into alleged money laundering, bank fraud and sanctions violations.
Binance did not respond to “numerous” emails and phone calls from the publication’s journalists seeking comment. The Justice Department declined to comment.
According to sources Bloombergwho wish to remain anonymous, the official decision of the department may be published at the end of November. The exact timing and structure of the proposed resolution, as well as the specific charges, have not yet been confirmed. Binance will likely have to pay more than $4 billion, which will be one of the largest fines in a criminal case related to cryptocurrencies.
The investigation is being led by the Criminal Division’s Money Laundering and Asset Recovery Unit, along with the Homeland Security Division and the U.S. Attorney’s Office in Seattle. According to several other sources of the publication, the agreement between regulators and the exchange is aimed at reaching a compromise that will allow Binance to continue operating and thereby not provoke a collapse of the crypto market and negative consequences for users.
Binance is seeking to minimize risks in any settlement, including by insisting on a deferred prosecution agreement, one of the people said.
If Binance and the US Department of Justice agree to defer prosecution, the department will file a criminal complaint against the company. The U.S. will not pursue criminal charges as long as the company complies with prescribed conditions, which typically include paying a substantial fine and agreeing to detail the facts of its wrongdoing. A process will be organized to monitor the company’s compliance with established requirements.
According to one of the interlocutors BloombergThe Justice Department is also investigating Binance for allegedly helping to circumvent US sanctions against Iran and Russia. Binance is also under scrutiny for allowing transactions that helped fund Hamas.
Representatives of the Ministry of Justice insist on a change in the company’s management, but it is not yet clear whether other Binance executives, except Zhao himself, will be charged in this case.
Source: Cryptocurrency
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