Shocking Request From The Us Department Of Justice To Binance
- Posted on November 21, 2023 5:39 AM
- Cryptocurrency Exchanges News
- 181 Views
The US Department of Justice has brought serious allegations and demands against Binance, one of the world's largest cryptocurrency exchanges. Negotiations are ongoing regarding the resolution of various charges, including those against Binance CEO Changpeng Zhao (CZ), and the possibility of facing criminal charges in the United States.
While CZ currently resides in the United Arab Emirates, which does not have a criminal extradition agreement with the US, this does not prevent him from voluntarily coming to the US. According to sources cited by Bloomberg, the situation is currently uncertain, but an announcement may be expected by the end of the month.
As part of the negotiations, it is claimed that Binance could make a payment of over $4 billion as part of a potential settlement. However, sources indicate that such a agreement could have negative consequences for the cryptocurrency sector and investors. Therefore, Binance aims to strike a balance that allows it to continue its operations.
In the event of reaching a deferred prosecution agreement between Binance and the Department of Justice, the Ministry will not initiate an investigation as long as the company fulfills the conditions, including accepting a detailed statement of facts acknowledging its wrongdoings.
Another source mentioned that the Department of Justice is investigating Binance for sanctions violations related to Iran and Russia, and additionally, Binance is under scrutiny for issues related to the financing of Hamas.
The uncertainty remains regarding whether other Binance executives, apart from CZ, will be prosecuted in the case. Binance has been in the regulatory spotlight for an extended period. In June of the previous year, the Securities and Exchange Commission (SEC) filed a lawsuit against Binance and CZ, accusing them of misleading investors and violating securities rules. In March, the Commodity Futures Trading Commission (CFTC) also alleged that Binance violated derivatives regulations.
