Binance Must Pay $4 Billion To End Criminal Case

United States authorities are reportedly pressing for $4 billion as part of a resolution for the criminal case involving Binance, the biggest crypto exchange in the world. Charges are anticipated for Binance and its founder, Changpeng Zhao (CZ), with experts believing that a final decision is likely before this month concludes.

Following the announcement, the value of Binance Coin (BNB) surged by more than 7%, reaching its highest point since June. Nevertheless, it remains notably below its peak in May 2021.

A necessary compromise

In ongoing negotiations between Binance and the United States Department of Justice (DOJ), it is being considered that CZ might face criminal accusations in the US as a part of a settlement to address allegations related to money laundering, bank fraud, and sanctions violations.

Although Zhao is presently residing in the United Arab Emirates (UAE), which lacks an extradition agreement with the United States, he could still voluntarily appear in the US. The demand by the DOJ amounts to over $4 billion, potentially resulting in one of the largest settlements in the crypto realm. While facing the prospect of criminal prosecution, an agreement might permit Binance to sustain its operations in the US, averting significant disruptions in the market.

A case for the history books

If finalized, this settlement could rank among the most substantial in the entire history of the cryptocurrency industry. As of now, Binance is yet to provide a response, but various industry analysts view the ongoing situation as an opportunity for the exchange to enhance compliance and foster investor friendly practices.

In addition, the development follows a recent conviction related to cryptocurrency fraud in which, notably, the accused was also residing in the UAE, with no extradition ties to the US. This adds a unique dimension to the case involving Binance as it is largely distinct compared to other lawsuits filed by US regulators against the exchange in the past.