The US Department of Justice (DOJ) has asked crypto exchange giant Binance to pay $4 billion as a resolution to its long-running investigation into the company.
Such negotiations include the possibility that Binance CEO Changpeng Zhao (CZ) could be charged with crimes including money laundering, bank fraud, and sanctions violations.
- According to Bloomberg, an announcement on a settlement agreement could arrive as early as the end of November. If Binance accepts it, it would be one of the largest sanctions ever for a crypto-related matter.
- The deal would “strike a balance” between sufficiently punishing Binance while allowing it to continue operating and not causing crypto markets to plummet, three people familiar with the matter said. BNB rose 4% to $257 following the report.
Sources contacted by Bloomberg chose to remain anonymous while discussing the confidential matter. “A settlement with an oversight provision in place could be a compromise that protects investors and gives Binance the opportunity to move in a more institutional and compliant future direction,” Matt said. Walsh, founding partner of venture capital firm Castle Island Ventures, according to Bloomberg.
- Despite the high price, some believe a settlement deal could be bullish for crypto markets.
“The payment will be settled and the bull market can begin” said @cousincrypt0 on X Monday. “Binance was the last piece of FUD bears in their room.”
- A large number of Binance executives left the company in July, apparently in response to CZ’s handling of the DOJ investigation.
- CZ and one of the deceased executives countered at the time that the individuals left the company on good terms, all for personal reasons.