BREAKING: U.S. DOJ Seeks Over $4B from Binance to Settle Criminal Offences

The United States Department of Justice (DOJ) is seeking over $4 billion from the leading cryptocurrency exchange Binance as part of a resolution over criminal offences that the exchange has allegedly abetted, Bloomberg reported on Monday.

Negotiations between the American agency and the crypto exchange include the likelihood that Changpeng Zhao (CZ), the CEO and founder of Binance, will face criminal charges in the country. However, with CZ based in the United Arab Emirates (UAE), the U.S. government will be unable to request the extradition of the Binance boss unless he surrenders himself willingly.

Binance to Pay More Than $4B in Settlement

Binance has been under probe by the U.S. DOJ for years for aiding transactions within prohibited regions and supporting illicit causes, such as money laundering, bank fraud, and the U.S. sanction violations.

For example, the crypto custodian was accused of facilitating transactions through Russian accounts despite a ban ordering crypto exchanges to disable transactions across the country. The ban was part of a way to cripple Russia’s economic power as it waged war against Ukraine. 

Similar investigations have been made involving several frozen Binance accounts that financed the Israel-Hamas war.

Investigations are led by the money laundering and asset recovery unit of the department’s Criminal Division, its National Security Division, and the U.S. Attorney’s office in Seattle.

Talks about reaching an agreement on the matter will likely occur in the coming weeks. According to three people familiar with the matter, a settlement that would allow Binance to continue to operate is expected to occur.

The latest fee would represent one of the biggest resolutions to ever occur involving the cryptocurrency industry.

Binance and CZ Face More Regulatory Crackdown

The latest regulatory crackdown imposed by the U.S. DOJ on Binance and its founder comes five months after the latter was sued by the U.S. Securities and Exchange Commission (SEC).

In June, the SEC alleged that Binance violated securities laws by offering unregistered security tokens to investors. In the agency’s claims, cryptocurrencies that pass the Howey Test are classified as securities and must be registered before being offered to U.S. investors.