Crypto
Binance: $4 Billion Fine to End US Legal Problems?
Binance is under pressure in the US because various lawsuits from authorities are pending. Binance majority owner CZ will probably have to decide for himself whether he will agree to the settlement with the US judiciary reported by Bloomberg. This would save the important business in America and allow him to travel the world without fear of extradition to the US.
As the world’s largest crypto exchange, Binance is a systemically relevant part of Bitcoin and Co. However, in the USA, the Binance offshoot has already been hit with two far-reaching lawsuits this year, one from the SEC and one from the CFTC. B
Binance founder and CEO Changpeng Zhao (CZ) is also personally accused in both cases. Now the business news agency Bloomberg reports, citing anonymous sources: A deal is being negotiated between the US Department of Justice and Binance.
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According to the agreement, Binance is to accept a fine of over $4 billion to settle the lawsuits out of court
The criminal proceedings against CZ may also be included in the package, writes Bloomberg. Neither Binance nor Changpeng Zhao have commented on the report yet – but neither has issued a denial. Out-of-court settlements between authorities and companies or private individuals are not uncommon in the US, but the sum of $4 billion would represent a record, at least for the crypto industry.
In return, such a settlement would apparently allow Binance to continue its US business under certain conditions. So far, Binance has stated that it intends to go through with the upcoming lawsuits. The various charges range from money laundering to illegal offerings. Changpeng Zhao regularly appears on global rich lists and his fortune was estimated at $96 billion at the beginning of 2022, according to Bloomberg.
The quarterly burning program of Binance Coin (BNB) also provides evidence of well-filled coffers: Here, Binance recently forked out almost $500 million from fee income to make BNB a deflationary cryptocurrency. Binance could therefore, in all likelihood, raise a penalty payment of $4 billion together with CZ. Binance Coin recorded a significant daily gain of 6 percent following the report of a possible deal with the US Department of Justice – the markets would obviously welcome such a settlement.
Conclusion: Billion-dollar deal between Binance and the US justice system?
Binance majority owner CZ will probably have to decide for himself whether he will agree to the settlement with the US judiciary reported by Bloomberg. This would save the important business in America and allow him to travel the world without fear of extradition to the US.
On the other hand, Binance, like many other crypto companies in the US, feels unjustly harassed by the authorities and Changpeng Zhao regularly styles himself as a champion of the free world of cryptocurrencies. The last word in this controversial matter does not yet seem to have been spoken.
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(Featured image by Vadim Artyukhin via Unsplash)
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First published in BLOCK-BUILDERS.DE. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.
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