The U.S. DoJ is ready to settle with Binance to end an investigation into the world's largest cryptocurrency exchange for alleged money laundering, bank fraud, and sanctions violations.
The agreement, valued at more than $4 billion, will help Changpeng Zhao, Binance's founder, avoid the criminal charges he faced if the parties failed to reach a deal.
According to Bloomberg, an agreement could be reached by the end of November, although the situation remains fluid. At the same time, both sides declined to comment on a possible settlement.
The investigation into Binance is being conducted jointly by the Criminal Division's Money Laundering and Asset Recovery Section, the Department of Homeland Security, and the U.S. Attorney's Office in Seattle.
In addition, the settlement will allow Binance to avoid collapse and continue to operate, protecting the markets from potential negative consequences.
"A settlement with a monitoring provision could be a compromise that protects investors and allows Binance to grow in a more institutionalized direction," said Matt Walsh, co-founder of Castle Island Ventures.
It's worth noting that the cryptocurrency exchange has always sought to minimize its risks in any settlement and explored various options on the matter, including a deferred prosecution agreement.
Recall that the Department of Justice brought charges against Binance in connection with evading U.S. sanctions against Iran and Russia, as well as transactions that may have contributed to the financing of Hamas.
Also on June 5, the Securities and Exchange Commission (SEC) filed a lawsuit in federal court in Washington, D.C., against Binance and Zhao, accusing them of creating a "web of deception" and multiple violations of U.S. law. On June 6, the regulator filed a motion to freeze the digital assets of the exchange's U.S. unit to ensure the safety of client funds.
On June 17, the SEC and Binance entered into a client funds agreement in the U.S., allowing the cryptocurrency exchange to resume withdrawing assets.
Earlier in March, the Commodity Futures Trading Commission said that Binance and its chief regularly violated U.S. derivatives regulations and requirements because the company was not registered with the agency.
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