The US Department of Justice is demanding more than $4 billion from Binance to end the investigation into Changpeng Zhao’s exchange. Negotiations include the possibility of a personal indictment of CZ, which would thus lift charges of money laundering and sanctions violations against the cryptocurrency exchange platform.
DOJ seeks more than $4 billion from Binance
Will Binance soon be out of trouble in the U.S.? If so, it will come at a price, and not a small one: Bloomberg reports that the US Department of Justice is demanding more than $4 billion from Changpeng Zhao’s crypto exchange to end the investigation that has hovered over it for several years.
According to the newspaper, these negotiations include the possibility of Changpeng Zhao being personally indicted in the US, which would lift suspicions of money laundering, bank fraud and sanctions violations on Binance.
*US SEEKS MORE THAN $4 BILLION FROM BINANCE TO END CRIMINAL CASE
Source: Bloomberg | Coins: BNB
– db (@tier10k) November 20, 2023
As Binance’s CEO resides in Dubai, he is not subject to extradition to America. However, he may decide to travel there on his own in order to end the investigation and cooperate with the authorities. A more detailed official announcement is expected by the end of the month, Bloomberg having obtained this information from 3 insiders.
It also appears that the case is being investigated by the Money Laundering and Asset Recovery and National Security sections of the U.S. Department of Justice. It should also be noted that the $4 billion claimed here from Binance is one of the largest sums ever claimed in a cryptocurrency crime case.
According to the 3 individuals familiar with the matter, the US government is more interested in finding a common agreement with Binance than penalizing the entire crypto market by preventing the giant from continuing its business.
For its part, Binance is said to be seeking a stay of proceedings. If this were to happen, a criminal complaint would be filed against the crypto company, but it could continue to operate normally under the supervision of the US Department of Justice after paying a financial penalty.
In any case, the assumption of an end to the US prosecution for Binance had a positive effect on the cryptocurrency market, with BNB seeing its market capitalization grow by almost $4 billion in the aftermath, and the Bitcoin price briefly climbing by 2.4% before quickly falling back.
It remains to be seen, therefore, whether Changpeng Zhao will decide to shake hands with the American justice system by paying a (very) generous fine, or whether he will decide to take the matter further in court. In any case, for the time being, we’ll have to wait for further information to shed light on the matter
