If Binance does pay more than $4 billion to resolve the U.S. Department of Justice's investigation into money laundering, bank fraud, and sanctions violations, it will be one of the largest cryptocurrency criminal fines ever.
Written by: Li Dan
Source: Wall Street Insights
The U.S. government may have to pay Binance billions of dollars to settle criminal charges.
Sina cited media reports on Monday, November 20, Eastern Time, as saying that the U.S. Department of Justice is seeking to propose that Binance pay more than $4 billion to resolve a years-long criminal investigation.
The media learned from people familiar with the matter that negotiations between the Department of Justice and Binance include an agreement in which Binance founder CZ may face criminal charges in the United States to resolve the Department of Justice’s investigations into money laundering, bank fraud and sanctions violations.
According to insiders, the above-mentioned settlement agreement may be announced as early as the end of this month, but the situation is still uncertain and may change. The exact timing and structure of the proposed settlement, as well as the exact cost, are unclear at this time.
According to people familiar with the matter, the settlement is intended to strike a balance that would allow Binance to continue operating without the risk of a collapse that would negatively impact the cryptocurrency market and cryptocurrency holders. Binance is trying to minimize the risks associated with any settlement, including pushing for a deferred prosecution agreement (DPA).
If Binance and the Department of Justice reach a DPA agreement, the Department of Justice will initiate criminal proceedings against Binance, but as long as Binance, as a defendant, complies with the conditions stipulated in the agreement, the Department of Justice will not actually advance the prosecution. Conditions set forth in the agreement often include paying a hefty fine and agreeing to detail the facts of the defendant's wrongdoing. As required by the agreement, a process will be developed to monitor Binance’s compliance.
Neither Binance nor the U.S. Department of Justice commented on the news. If Binance pays more than $4 billion as reported, it will be one of the largest cryptocurrency criminal fines ever.
