US Department of Justice may require Binance to pay $4 billion as part of settlement investigations, which has been ongoing since at least 2021. The agency reported the possible conclusion of a deal, citing its own sources. Bloomberg.
According to sources, the deal involves an agreement to defer prosecution of Binance. In this case, the Ministry of Justice will file an indictment against the company, but will not seek prosecution as long as the company complies with the prescribed conditions. These will include paying a fine, agreeing to a detailed statement of facts describing the offenses on the part of Binance, as well as complying with the requirements put forward by the Ministry of Justice. The latter will be monitored by a trusted representative of the Ministry of Justice.
At the same time, as sources note, the deal most likely will not save Binance founder Changpeng Zhao from criminal charges. He currently resides in the UAE, which does not have an extradition treaty with the United States.
According to sources, negotiations between the company and US authorities are ongoing, and the situation could still change in any direction. If the parties agree on the terms proposed by the Ministry of Justice, then the deal may be announced in the coming days.
The Justice Department accuses the companies and Mr. Zhao of money laundering, bank fraud, as well as helping Russia and Hamas (recognized as a terrorist organization in the United States) to circumvent American sanctions. At the same time, the Securities and Exchange Commission continues its own investigations against Binance in the United States (SEC), as well as the Commodity Futures Trading Commission (CFTC).
Binance’s BNB token rose 8.5% to $266.42 after Bloomberg reported the talks.