US reaches over-$4 billion settlement with world’s largest cryptocurrency exchange, AP source says

6 views 4:27 pm 0 Comments November 21, 2023

The U.S. government has reached a settlement with the world’s largest cryptocurrency exchange worth more than $4 billion, a person familiar with the agreement told The Associated Press on Wednesday.

The settlement with Binance was confirmed under the condition of anonymity in anticipation of an upcoming announcement. Bloomberg first reported the value of the payment.

It comes months after the company was accused of operating as an unregistered securities exchange and violating a slew of U.S. securities laws in a lawsuit from regulators.

Binance is a Cayman Islands limited liability company founded by CEO Changpeng Zhao. The charges were similar to practices uncovered after last year’s collapse of the second-largest cryptocurrency exchange, FTX.

Zhao has also faced allegations of diverting customer funds, concealing that the company was commingling billions of dollars in investor assets and sending them to a third party that Zhao also owned.

Upon the U.S. Securities and Exchange Commission filing a lawsuit against the company, Binance stated that it had been cooperating with the investigation. However, the company contended that the agency “chose to act unilaterally and litigate.”

Scandals and market meltdowns have marred the cryptocurrency industry. Sam Bankman-Fried, the 31-year-old founder of the failed cryptocurrency brokerage, was convicted earlier this month of fraud for stealing at least $10 billion from customers and investors.

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