The U.S. Justice Department is reportedly negotiating with cryptocurrency exchange Binance Holdings to resolve a long-standing investigation.
The department is seeking a settlement of over $4 billion from Binance, which would mark one of the most significant penalties ever imposed in a criminal cryptocurrency case, Bloomberg reported Monday (Nov. 20), citing unnamed sources.
The negotiations between the Justice Department and Binance also include the possibility of criminal charges against Changpeng Zhao, the founder of Binance, according to the report.
Neither the Justice Department nor Binance immediately replied to PYMNTS’ request for comment.
The investigation, which spans several years, focuses on allegations of money laundering, bank fraud, and sanctions violations, according to the report. Led by the criminal division’s money laundering and asset recovery section, along with the national security division and the U.S. attorney’s office in Seattle, the case is one of the largest ever conducted into a cryptocurrency company.
The report said a resolution could be announced by the end of the month. However, the negotiations remain fluid, and the settlement’s timing, structure, and specific charges are yet to be determined.
The resolution seeks to strike a balance that would allow Binance to continue operating, preventing a collapse that could have negative consequences for markets and crypto holders, per the report.
Market reaction to the news of the negotiations has been mixed, according to the report. Following the publication of notice of the potential settlement, the BNB cryptocurrency experienced an 8.5% increase in value.
The report said that Binance has already faced legal and regulatory actions from the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).
The United Arab Emirates (UAE), where Zhao resides, reportedly does not have an extradition treaty with the U.S. Therefore, for Binance’s founder to face criminal charges, he must come to the United States voluntarily.
It was reported in May that the Justice Department was probing whether Binance violated U.S. sanctions against Russia. BPrior to this, there were reports that the firm was engaged in discussions with the department to address previous complaints, alleging that it was utilized to circumvent sanctions against Iran.
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