The U.S. Department of Justice will hold a press conference Tuesday afternoon announce the settlement.
Binance has been the target of a DOJ probe.
Photo from Unsplash
Posted November 21, 2023 at 12:39 pm EST.
Binance will resolve an ongoing U.S. Department of Justice (DOJ) criminal investigation in an agreement that the DOJ will announce Tuesday afternoon (ET), according to several reports.
The crypto exchange giant’s CEO and founder Changpeng “CZ” Zhao, according to Forbes and The Wall Street Journal.
In a statement Tuesday, DOJ said that U.S. Attorney General Merrick Garland would hold a press conference announcing “separate but related cryptocurrency enforcement actions.”
The settlement will involve the Commodities Futures Trading Commission (CFTC) and the U.S. Treasury Department and likely close an ongoing criminal probe into the world’s largest cryptocurrency exchange.
Read More: Binance in Discussions With DOJ to Pay Over $4B to Settle Criminal Case: Bloomberg
Bloomberg first reported the news, citing two unnamed sources. Reuters later reported that the investigation was nearing an end, citing a source. At the time of publication, DOJ had not responded to an Unchained request for comment. Unchained also reached out to Binance for comment.
The DOJ, is seeking more than $4 billion in penalties as part of a settlement, Bloomberg and other outlets reported on Monday.
The DOJ has been investigating Binance for money laundering, bank fraud and violation of U.S. sanctions. A $4 billion penalty would rank among the largest ever in the crypto industry. But the proposal could also enable Binance to continue operations and avoid a collapse that might ripple through the industry – a concern among U.S. officials.
But discussions between Binance and the DOJ left open the possibility that Zhao could still face criminal charges, Bloomberg reported. On Tuesday, The Journal and Forbes, citing unnamed sources, reported that Zhao would step down and plead guilty to breaking criminal U.S. anti-money-laundering requirements. Zhao will enter a plea Tuesday afternoon in a Seattle federal court, The Journal reported.
Bitcoin initially dipped on the news but more recently regained lost ground to hover above $37,000, roughly flat over the past 24 hours. Binance’s BNB token was up about 5% from Monday, same time.
Read More: SEC’s Secret Court Filing in Binance Case Could Mean DOJ Criminal Probe
Binance has been facing legal and regulatory scrutiny on multiple fronts. In June, the Securities and Exchange Commission (SEC) sued Binance, Zhao and Binance.US in June for allegedly listing unregistered securities as cryptocurrencies for trading and investment by U.S. investors. And in March, the U.S. Commodity Futures Trading Commission (CFTC) sued Binance and Zhao, accusing them of knowingly offering unregistered crypto derivatives products in violation of federal law.
UPDATE (November 21, 2023, 13:18 ET): Changes headline and adds information about Zhao resignation.
