The U.S. Department of Justice has reportedly demanded more than $4 billion in fines from Binance to resolve a years-long investigation into the world’s largest cryptocurrency exchange. According to Bloomberg, the Justice Department proposed a significantly high fine of over $4 billion to conclude the investigation. The discussions also include allegations against Binance’s CEO, Changpeng Zhao.
As part of the negotiations, the Justice Department is seeking a deferred prosecution agreement for Binance. This agreement involves the Justice Department making a criminal complaint, but not filing a lawsuit against the company if three conditions are met. These conditions include Binance paying the fine of over $4 billion, publishing a detailed document acknowledging violations of the law, and committing to a monitoring process during the compliance phase. Binance will also be required to complete the compliance process thoroughly.
This development has not been officially confirmed by authoritative sources yet. Additionally, Binance’s CEO has strongly reacted to some news previously reported by Bloomberg.
Many in the crypto community see this potential fine as one of the largest imposed on a company, but reaching an agreement could bring relief to the crypto sector.
Simultaneously with the news of the Justice Department offering a settlement to Binance, it was observed that the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against another cryptocurrency exchange, Kraken. The crypto community expressed dissatisfaction with Kraken reopening legal proceedings against the SEC despite paying a $30 million fine at the beginning of the year.
