US DOJ seeks $4 billion from Binance to end investigations

The U.S. Department of Justice has sought $4 billion from the cryptocurrency exchange Binance as part of a deal to end the ongoing criminal investigation. The information is reported by Bloomberg.

According to sources familiar with the matter, negotiations between the parties indicate that Changpeng Zhao, the head of the trading platform, could face charges of money laundering, financial fraud and sanctions violations.

An official announcement on the deal could come as early as the end of November, although the situation remains uncertain, Bloomberg says.

“A settlement with a monitoring provision could be a compromise that protects investors and allows Binance to develop in a more institutional direction,” said Matt Walsh, co-founder of Castle Island Ventures.

The agreement is aimed at reaching a balance that would allow Binance to continue operating rather than risk a business, the collapse of which could have negative consequences for markets and cryptocurrency holders, according to people familiar with the matter.

In the wake of the news, the BNB token price initially fell below $240, but then rose to around $270. At the time of writing, the asset was trading at $259, up 2.8% on the day.

On June 5, SEC filed suit against Binance and Zhao, accusing them of 13 counts, including the sale of unregistered securities. On June 6, the regulator filed a motion to freeze the digital assets of the exchange’s U.S. unit.

On June 9, users lost the ability to deposit dollars, prompting selling by those wishing to withdraw funds in fiat. In the wake of this, on the platform a discount appeared in BTC quotes in the USD pair — the indicator reached about $2,200 (7.3%).

On June 17, the SEC and Binance reached an agreement on customer funds in the United States. The exchange resumed withdrawals of assets, but the company warned that the situation could change.

According to an internal presentation, Binance.US growth prospects are limited due to ties between the business and Zhao and the current regulatory environment.