A new development in Binance's case led by the US Department of Justice is reportedly looking to close, but it comes with a massive price for the crypto exchange platform to pay, with a whopping sum of $4 billion. This price is what it takes to end the long-dragging probe by the DOJ against Binance, particularly with the alleged criminal charges against its CEO.
The ongoing investigation is reportedly under negotiations, but this settlement means that Binance's US operations would continue and avoid a significant blow.
Binance DOJ Lawsuit Settlement Asks for $4B
(Photo : PATRICIA DE MELO MOREIRA/AFP via Getty Images)
Bloomberg reported that sources knowledgeable about the current Binance issue claim that the Justice Department is now seeking as much as $4 billion from Binance, a lawsuit settlement that would end their probe. This settlement also centers on possible criminal charges in the United States that would go against its CEO and co-founder, Changpeng Zhao.
Currently, the said lawsuit is allegedly centering on violations by Binance regarding money laundering, bank fraud, and sanctions.
Zhao is currently based in the United Arab Emirates says Gizmodo, and he would not be facing any extradition as there are no treaties between the US and the UAE. However, he is subject to criminal charges if he steps foot on American soil.
Read Also: Crypto Prices Drop after SEC's Lawsuits Against Binance, Coinbase-Some Coins No Longer Sold
Settlement: Continued US Crypto Operations
The massive settlement will be a massive blow to Binance, but this means that its operations in the United States will continue, and this in turn would help it avoid market fallouts and customers.
Moreover, the report claims that this would avoid another incident that will lead to a crypto exchange platform's collapse.
Binance's Lawsuit and CEO Scrutiny
While the FTX and Sam Bankman-Fried were the massive focus of the crypto exchange and its CEO's public deceit, it was not the only platform to face complaints and lawsuits from US regulators and the DOJ. Earlier this year, the US Securities and Exchange Committee (SEC) filed charges against Binance and its CEO for remaining unlicensed while operating on a massive scale in the US.
Also, Binance faced another lawsuit earlier this March that centered on the US Commodity Futures Trading Commission (CFTC) for their alleged violations and unsanctioned operations. This centers on their violations of the Commodity Exchange Act (CEA) and CFTC regulations, with it also telling customers to use VPNs, for US-based customers, to avoid detection.
This latest development for Binance's case with the DOJ may be coming to an end, with negotiations currently underway to settle the lawsuit and put an end to the investigation against them. However, this means that the company would need to pay the reported sum of $4 billion, which is a significant blow to them, with criminal charges against Zhao still on the table.
Related Article: Binance Exits The Netherlands After Missing Registration Requirements
