The U.S. Justice Department is pursuing a sum exceeding $4 billion from Binance Holdings as part of a proposed resolution to a long-standing investigation into the world’s largest cryptocurrency exchange.

Ongoing negotiations involve the potential for Binance’s founder, Changpeng Zhao, also known as “CZ,” to face criminal charges in the U.S. under an agreement to settle the probe involving alleged offenses such as money laundering, bank fraud, and sanctions violations.

Individuals familiar with the discussions have indicated that although Zhao resides in the United Arab Emirates, which lacks an extradition treaty with the U.S., it does not preclude him from voluntarily engaging with U.S. authorities.

Binance responded to only one email and phone call seeking comment. The Justice Department declined to comment.

An announcement could come as soon as the end of the month, though the situation remains fluid, according to the people who asked not to be named discussing a confidential matter.

The BNB cryptocurrency, a token native to Binance and the BNB Chain blockchain created by the exchange, rose 8.5 percent to US$266.42 after Bloomberg reported the negotiations.

“A 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,” said Matt Walsh, founding partner at cryptocurrency venture firm Castle Island Ventures.

The exact timing and structure of the proposed resolution and specific charges aren’t precise. However, Binance would likely be expected to pay more than US$4 billion, one of the largest-ever penalties in a criminal cryptocurrency case.

The Money Laundering and Asset Recovery Section of the Criminal Division, the National Security Division, and the U.S. Attorney’s Office in Seattle spearheaded the investigation.

The agreement seeks to strike a balance that would allow Binance to continue operating rather than risk a collapse that could cause negative fallout for markets and cryptocurrency holders, said three people.

Another person said that Binance has sought to minimize its exposure in any settlement, including pushing for a deferred prosecution agreement.

If Binance and the DOJ agree on a deferred-prosecution agreement, the Justice Department will file a criminal complaint against the company. The US will only prosecute if the company meets prescribed conditions, which usually include paying a substantial penalty and agreeing to a detailed statement of facts outlining its wrongdoing. A process would be set up to monitor the company’s compliance.

Concerning possible sanctions violations, the Justice Department has been investigating Binance for allegedly aiding in the evasion of US sanctions against Iran and Russia, one of the people said. Binance has also been scrutinized for whether it allowed transactions that helped finance Hamas.

The case is one of the Justice Department’s most extensive investigations into a cryptocurrency company. A settlement would represent another historic resolution following the collapse of cryptocurrency exchange FTX, which resulted in the conviction of its founder, Sam Bankman-Fried, on fraud and conspiracy charges earlier this month.

While Justice Department officials have been pushing for a broad leadership change at the company, it needs to be clarified if other Binance executives besides CZ would face charges in the case.

Binance has faced legal and regulatory action from other US agencies and increased scrutiny from US lawmakers.

Last June, the Securities and Exchange Commission sued Binance and Zhao for mishandling customer funds, misleading investors and regulators, and breaking securities rules.

The lawsuit effectively crippled Binance’s US unit. Brian Shroder, chief executive officer of Binance.US, left the company in September amid another round of job cuts at the struggling cryptocurrency platform. The company eliminated about one third of its workforce, or more than 100 positions. Trading volumes on Binance.US have slowed to a trickle after the exchange lost its banking support and suspended US dollar deposits.

In March, the Commodity Futures Trading Commission (CFTC) accused Binance and Zhao of consistently violating U.S. derivatives rules as the platform expanded to become the world’s largest digital-asset trading platform. The CFTC asserted that Binance should have registered with the agency years ago and continues to breach the regulator’s rules.

In March, the Commodity Futures Trading Commission alleged that Binance and Zhao routinely broke US derivatives rules as the firm grew to be the world’s largest digital-asset trading platform. Binance should have registered with the agency years ago and continues to violate the CFTC’s rules, the regulator said at the time.

Binance has contested the lawsuits, said it actively cooperated with the regulators’ probes and was disappointed by the enforcement actions. In a March statement, CZ said the CFTC complaint “appears to contain an incomplete recitation of facts” and that Binance disagrees with how many issues are characterized. The company called the SEC filing an attempt by the agency to regulate “with the blunt weapons of enforcement and litigation rather than the thoughtful, nuanced approach demanded by this dynamic and complex technology.”

CZ worked at Bloomberg, the parent company of Bloomberg News, from 2002 to 2005.

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