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US Demands $4B From Binance to Close Criminal Case: Report

by BSC News

November 20, 2023

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Negotiations aim for a delicate equilibrium, allowing Binance to sustain operations without risking a collapse that could adversely impact markets and cryptocurrency holders.

The US Justice Department is in the final stages of negotiations with Binance Holdings Ltd., seeking a resolution that would require the cryptocurrency exchange to pay over $4 billion. This could mark the potential conclusion of a prolonged investigation into alleged money laundering, bank fraud, and sanctions violations, according to a recent report from Bloomberg. Key aspects of the investigation include the likelihood of criminal charges against Binance founder Changpeng Zhao.

The investigation, led by various divisions, including the criminal division’s money laundering and asset recovery section, is one of the most extensive probes into a cryptocurrency company by the Justice Department. While specific charges and the structure of the proposed resolution remain undisclosed, it is anticipated that the penalty imposed on Binance would be one of the largest in the history of criminal cryptocurrency cases.

Negotiations reportedly aim to strike a delicate balance, allowing Binance to continue its operations without facing a collapse that could adversely affect markets and cryptocurrency holders. The proposed deferred-prosecution agreement involves filing a criminal complaint against Binance, with deferred prosecution contingent on the company meeting prescribed conditions, including a substantial penalty payment and acknowledgment of wrongdoing.

The case signifies a broader trend of increased legal and regulatory actions against Binance by US authorities. The Securities and Exchange Commission (SEC) has previously filed a lawsuit against Binance and Zhao, alleging mishandling of customer funds, misleading information to investors and regulators, and violations of securities rules.

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Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article

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