The U.S. Department of Justice (DOJ) has requested that crypto exchange giant Binance pay $4 billion as a resolution to its lengthy investigation of the company.
Such negotiations include the possibility that Binance CEO Changpeng Zhao (CZ) is charged with crimes possibly including money laundering, bank fraud, and sanctions violations.
- According to Bloomberg, an announcement on a settlement deal could arrive as early as the end of November. If accepted by Binance, it would be one of the largest penalties of all time for a crypto-related case.
- The agreement would “strike a balance” between punishing Binance sufficiently while allowing it to continue to operate and not cause crypto markets to plummet, said three people familiar with the matter. BNB rose 4% to $257 following the report.
The sources contacted by Bloomberg chose to remain anonymous while discussing the confidential topic.“A settlement with a monitoring provision in place could be a compromise that protects investors and allows Binance the option to evolve into a more institutional and compliant future direction,” said Matt Walsh, founding partner at crypto venture firm Castle Island Ventures, according to Bloomberg.
- Despite the massive price tag, some believe a settlement deal could be bullish for crypto markets.
“The payment will be settled and the bull market can get going,” said @cousincrypt0 on X on Monday. “Binance was the last bit of FUD bears had in their chamber.”
- A slew of Binance executives left the company in July, reportedly in response to CZ’s handling of the DOJ’s investigation.
- CZ and one of the departed execs countered at the time that the individuals were leaving the company on good terms, all for personal reasons.