The US Department of Justice is proposing a $4 billion settlement with Binance, which could implicate founder Changpeng Zhao in a landmark case involving allegations of money laundering and sanctions violations.
The US Department of Justice (DOJ) is reportedly in the advanced stages of finalizing a major financial deal with Binance. This agreement, which could exceed $4 billion, aims to conclude the long investigation into the company’s alleged financial misconduct, according to Bloomberg reports.
Key aspects of the investigation include allegations of money laundering, bank fraud and breaches of US sanctions. Central to these allegations is Changpeng Zhao, founder and CEO of Binance, who may personally face criminal charges in the United States.
Zhao currently resides in the United Arab Emirates, a nation without an extradition treaty with the United States.
The resolution, which could be announced imminently, seeks to balance judicial enforcement with Binance’s operational continuity. Sources indicated that the Department of Justice wants to avoid possible market destabilization and protect the interests of cryptocurrency users globally.
Binance’s battle with US regulators continues
Details about the specific charges and the structure of the deal remain under wraps. The Department of Justice’s Money Laundering and Asset Recovery Section, along with the Homeland Security Division and the U.S. Attorney’s Office in Seattle, are leading this landmark case.
Binance’s legal strategy reportedly includes negotiating a deferred prosecution agreement to mitigate its liability. The investigation has also explored the exchange’s role in possible circumvention of US sanctions against countries such as Iran and Russia and has examined transactions that potentially help Hamas. These aspects underscore the expansive nature of the research.
This case marks a pivotal moment in the US Department of Justice’s scrutiny of the cryptocurrency industry, closely following the prosecution of FTX founder Sam Bankman-Fried.
The possibility of sweeping changes to Binance’s leadership has been discussed, although it remains uncertain whether other executives will be involved alongside Zhao.
In a separate legal battle, the SEC sued Binance and its CEO for alleged mismanagement of customer funds and violations of securities regulations, severely affecting Binance’s operations in the United States. Binance.US has experienced significant workforce reductions and leadership changes in the wake of these legal issues.
