Sunday, December 10, 2023

Binance Deal with US DOJ Could Point Crypto Exchange to Compliance

The US Department of Justice (DOJ) is nearing a settlement with crypto exchange Binance to resolve a multi-year investigation into alleged money laundering, bank fraud, sanctions violations, and other issues. A settlement could come at the end of this month.

ā€œA settlement with a monitoring provision in place could be a compromise that protects investors and allows Binance the option to evolve into a more institutional and compliant future direction,ā€ said Matt Walsh, founding partner at crypto venture firm Castle Island Ventures.

The deal seeks to allow Binance to continue operating while reforming compliance practices, according to Bloomberg citing people familiar with the matter. Binance would likely pay a penalty exceeding $4 billion, one of the largest fines ever in a crypto case.

Binance founder Changpeng Zhao may also face individual US criminal charges. Zhao resides in the United Arab Emirates, which lacks an extradition treaty with the US.

In March 2023, the CFTC sued Binance for selling unregistered futures and options to US traders. In June 2023, the SEC filed charges over operating unregistered exchanges and making false statements about its US platform Binance.US. The SEC alleges Binance controlled Binance.US behind the scenes despite claims of independence.

The DOJ has also investigated Binance for potentially enabling sanctions evasion with Russia and for facilitating transactions that funded Hamas, which the US labels a terrorist group.

Despite contesting...

source: https://cryptobriefing.com/us-doj-binance-deal-points-crypto-exchange-compliance/