Binance faces historic penalty as DOJ settlement talks suggest over $4 billion

cyptouser1 weeks agoCryptocurrencies News8

Binance Holdings is in talks with the U.S. Justice Department (DOJ) to resolve allegations of criminal activities, including money laundering, bank fraud, and sanctions violations, via a settlement that could exceed $4 billion, Bloomberg News reported Nov. 20, citing sources.

The development follows a years-long investigation by U.S. authorities into Binance’s operations related to compliance with anti-money laundering regulations and its adherence to international sanctions.

According to the report, the negotiation also raises the possibility of criminal charges against Binance’s founder Changpeng Zhao — underscoring the allegations’ severity.

The news initially caused a massive sell-off in BNB, causing the price to crash to $233.46. However, the token quickly recovered to previous levels and surged another 10% to $269 before seeing a minor retracement.

BNB is currently trading at $260.82, up 6.82% over the past 24 hours, according to CryptoSlate data.

Largest settlement in crypto history

Binance, founded in 2017, has rapidly grown into a titan in the crypto industry, offering various services, including cryptocurrency trading, blockchain technology, and token sales. However, this growth has not been without scrutiny, as regulators worldwide have raised concerns about the platform’s operations and its potential role in facilitating illegal financial activities.

The proposed settlement, if agreed upon, could mark one of the largest penalties in the history of the cryptocurrency industry. It would signal a significant shift in the regulatory landscape, highlighting the increasing efforts of U.S. authorities to clamp down on malpractices in the burgeoning crypto market.

The implications of such a settlement are extensive. A financial penalty of this magnitude could set a precedent for how regulatory bodies handle similar cases. Moreover, it could prompt other cryptocurrency platforms to strengthen their compliance mechanisms to avoid similar scrutiny.

Representatives from Binance and the U.S. Justice Department have not made official statements regarding the ongoing negotiations as of press time.

The situation remains dynamic, and its outcome could significantly impact the crypto industry.

The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

Ripple ruling is likely to be appealed and overturned, ex-SEC official says

The Ripple case ruling is “ripe for appeal” and likely to be overturned, John Reed Stark,...

The Trial of Sam Bankman-Fried: Key Points to Understand

Sam Bankman-Fried, often referred to as SBF, is about to face one of the most significant legal batt...

Canadian asset manager 3iQ will begin staking the ETH in its Ethereum ETFs

3iQ, Canada’s first Bitcoin (BTC) fund issuer, revealed that its Ethereum-based (ETH) exchange-trade...

Bitcoin recent rally pushes MicroStrategy into over $110M in paper profit

MicroStrategy’s Bitcoin (BTC) investment is now in the green, boasting over $110 million in un...

SBF Trial – Caroline Ellison's second day of testimony included Thai sex workers, bribery and private messages with SBF

The sixth day of SBF’s trial mainly revolved around the continued testimony of the prosecution...

Singapore's Monetary Authority launches new asset tokenization pilots with Project Guardian expansion

The Monetary Authority of Singapore (MAS) has escalated its efforts to expand its asset tokenization...