Bloomberg reported, citing sources familiar with the matter, that Binance is in negotiations with the US Department of Justice regarding multiple criminal charges. The Department of Justice may seek over $4 billion in settlement, which would be the largest settlement amount in the history of cryptocurrency. The negotiation results could potentially emerge by the end of this month.
The sources revealed that Binance is seeking a special agreement with the US Department of Justice (DOJ) to mitigate the risk of settlement. This agreement, known as a “deferred prosecution agreement,” would allow Binance to avoid immediate court proceedings under certain conditions.
These conditions typically include paying a substantial fine, agreeing to a detailed statement describing the company’s misconduct, and establishing a monitoring mechanism to ensure Binance complies with these conditions and regulations. In essence, this is an arrangement that allows the company to avoid criminal prosecution by meeting specific requirements.
On the other hand, while Binance has the opportunity to settle with the SEC, as part of the settlement agreement, Binance CEO Changpeng Zhao (CZ) may be formally charged with crimes such as money laundering, bank fraud, and violations of sanctions. However, Zhao currently resides in the United Arab Emirates, which does not have an extradition treaty with the United States.
Three sources indicated that the negotiations aim to strike a balance that allows Binance to continue its operations without the risk of collapse, thereby avoiding negative impacts on the market and cryptocurrency holders. Matt Walsh, founding partner of cryptocurrency venture capital firm Castle Island Ventures, commented on this.