The United States Department of Justice requests 4 billion dollars binance end a years-long investigation into the world’s largest cryptocurrency exchange, according to BloombergNegotiations are reportedly underway that could subject Binance co-founder and CEO Changpeng Zhao (also known as CZ) to criminal charges in the US.
Bloomberg cites people familiar with the discussions as saying that the Justice Department alleges money laundering, bank fraud and sanctions for violations in an ongoing investigation against Binance. The deal will allow Binance to continue operating in the US and avoid major consequences for cryptocurrency markets and holders. , and at the same time deals a significant blow to Binance. If terms are agreed, it would be one of the largest deals in crypto history.
Binance and the Department of Justice did not immediately respond to Gizmodo’s request for comment.
The Justice Department hopes for another big victory in regulating cryptocurrency exchanges, soon after condemning Sam Bankman-Fried of fraud and conspiracy charges at FTX this month. This deal, if a deal is reached, would put another founder in the hot seat, Zhao, but would theoretically avoid market disruption from another failed cryptocurrency exchange.
Unlike SBF, Zhao currently resides in the United Arab Emirates, where there is no extradition treaty, so he would only face criminal charges if he returned to American soil or one of the many countries that have agreements with the United States. Having said this, the United Arab Emirates signed an agreement cooperate on cybercrime with the United States in 2022, but it is unclear whether that would apply here.
According to Bloomberg:
Binance has tried to minimize its exposure in any deal, including pushing for a deferred processing agreement, another person said.
If Binance and the Department of Justice reach a deferred prosecution agreement, the Department of Justice will file a criminal complaint against the company. would not proceed with a prosecution as long as the company complies with the prescribed conditions, which generally include paying a substantial fine and agreeing to a detailed statement of facts describing its wrongdoing. A process will be established to monitor the company’s compliance.
Binance has He fiercely opposed US regulation, calling a lawsuit by US regulators last month inflammatory. Changpeng Zhao’s cryptocurrency exchange emphasized in a court filing that US law governs domestically, but does not control the world. Congress did not make the CFTC the world’s derivatives police.
Bitcoin price hovers above $37,000 on Monday, boosted by news of the potential deal with Binance. However, the price is also boosted by the new anarcho-capitalist Argentine president, Javier Milei, who was elected this weekend and has a strong preference for Bitcoin and distrust in central banks.
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