Binance and its CEO and founder Changpeng Zhao, better known as CZ, could reportedly face charges of money laundering conspiracy and other violations in the US.
Possible charges are – at this point – still only a possibility, with opinion on the matter reportedly divided within the US Department of Justice (DOJ). Disagreements within the department are now causing a delay in the conclusion of a long-running investigation into Binance and its top executives, Reuters reported. informed of on Monday.
Binance, known as the world’s largest crypto exchange by trading volume, has been under investigation by the DOJ since 2018, according to a Reuters report. The investigation reportedly focuses on money laundering conspiracy, unlicensed money transmission and breach of criminal sanctions.
The report cited four people “familiar with the matter” as its sources.
The report says some people at the DOJ who are part of the investigation believe the agency already has enough information to “move aggressively against the exchange” and file criminal charges. . However, others inside the DOJ have argued that they still need more time to review the evidence.
The sources said the options now being weighed by the DOJ include bringing an indictment against Binance, reaching a settlement or closing the case without taking any action.
The investigation is said to focus on Binance CEO Changpeng Zhao and other unnamed officials of the exchange.
plea bargain discussed
A possible plea deal has been discussed between Justice Department officials and Binance lawyers, according to three of the sources cited in the Reuters piece.
Asked to comment on the story, a Binance spokesperson said:
“We have no insight into the inner workings of the US Department of Justice, nor would it be appropriate for us to comment.”
Binance Under Increasing Scrutiny
Binance has come under scrutiny in the weeks since Collapse of rival exchange FTXSome claim that Binance employs many of the same business methods as FTX.
Earlier this week, it was reported that Binance’s new Proof-of-reserve report has already shown red flagsSome experts claim that this is not enough to satisfy anxious users.
The so-called proof-of-reserves report was released on December 7 in the form of a 5-page PDF document prepared by the South African branch of global accounting firm Mazar. The report was based purely on “agreed-processes (“AUP”) engagements, and is therefore limited in scope.
On Tuesday, speculation about Binance’s financial situation intensified, with several prominent crypto community members urging their followers to get their coins from Binance, as well as any other exchange for that matter.
Others pointed to the massive outflows that have already been seen on the exchange:
Despite the massive outflow, CZ himself appeared calm on Twitter, writing “we saw some withdrawals today.”
“We’ve seen it before […] Business as usual for us,” he wrote before encouraging his followers to “stress test” exchanges by periodically withdrawing from exchanges.
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