Binance, a cryptocurrency exchange, is reportedly in discussions with US regulators to reach a settlement regarding criminal charges and related investigations, as indicated by individuals familiar with the situation.
According to a report by Bloomberg on Monday, the US Department of Justice stands to potentially collect over $4 billion through this settlement agreement. It's worth noting that Binance is currently facing a civil lawsuit in the United States filed by the US Securities and Exchange Commission (SEC). These negotiations between Binance and the DOJ have been ongoing for several years.
The proposed arrangement between the Department of Justice and Binance would allow the exchange to continue its operations, averting the possibility of a collapse and associated consequences. Simultaneously, it would grant law enforcement access to Binance's extensive database, with the aim of enhancing monitoring of illicit financial activities.
It's important to mention that Binance has faced competition, with FTX being one of its competitors, which experienced a collapse in November of the previous year.
This settlement effort is reportedly being led by the DOJ's money laundering and asset recovery team. Binance has been under investigation by the Department of Justice for an extended period, with lawmakers urging the DOJ to make a determination on potential charges as far back as October.
Furthermore, Binance is under DOJ scrutiny for alleged sanctions violations. Reports suggest that the company may have assisted in evading Russian and Iranian sanctions. There have also been accusations of Binance aiding Hamas, although it collaborated with Israeli authorities to freeze crypto accounts linked to Hamas in October.
In addition to the Department of Justice investigation, Binance is facing a lawsuit from the Securities and Exchange Commission (SEC), which alleges that the exchange offered unregistered securities and mixed customer funds.
As of now, representatives from Binance and the Department of Justice have not responded to requests for comment. Following this news, the price of Binance's token (BNB) saw a significant increase, rising by nearly 7% at the time of reporting, according to TradingView data.
