US Dept of Justice and Binance Negotiate $4 Billion Settlement over Investigation
Summary:
The U.S. Department of Justice is reportedly negotiating a settlement with digital currency firm Binance over ongoing investigations. The settlement may involve Binance paying $4 billion in fines while continuing to operate in compliance with U.S. laws. Binance CEO, Changpeng Zhao, may face criminal charges related to alleged money laundering, banking fraud and sanctions violations. Binance is seeking a "deferred prosecution agreement" which would require them to pay the stated fines, admit to instances of non-compliance with the law and agree to a future monitoring process for legal compliance.
The United States Department of Justice is reportedly in talks with Binance in an effort to settle an ongoing investigation about the company, states a recent publication by Bloomberg on the 20th of November, based on sources privy to the matter. The potential settlement might necessitate Binance to cough up fines amounting to $4 billion. The concession would allow Binance to continue operations while ensuring adherence to US regulations. Speculations indicate that an official announcement regarding the settlement might be made by the end of the month.
In accordance with the potential settlement agreement, Changpeng Zhao, better known as "CZ", the CEO of Binance, could find himself facing criminal allegations stemming from what is known as an investigation on "presumed money laundering, banking fraud and sanctions violations." As per the report, CZ is currently residing in the United Arab Emirates (UAE), which lacks an extradition agreement with the US, implying that the chances of CZ facing criminal charges on US soil are slim.
The report further mentions that Binance is in pursuit of a "deferred prosecution agreement." The terms of this agreement would require the Justice Department to file a criminal charge but withhold actual prosecution provided Binance follows certain guidelines. Primarily, a payment of $4 billion in fines. Following this, Binance must release a comprehensive report admitting to all instances of non-compliance with the law. Finally, a monitoring procedure must be instated to guarantee that Binance adheres to laws and regulations moving forward and Binance must conform to this procedure.
When approached for a statement regarding the report, Binance did not respond before the report was published. CZ, in 2022, took legal action against a subsidiary of Bloomberg accusing them of spreading false narratives that he was fostering a "Ponzi Scheme.
Published At
11/20/2023 7:43:26 PM
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