Crypto markets went up because there’s a chance Binance might settle with the U.S. Department of Justice.
Binance Nears Possible Settlement Amidst Founder’s Potential Charges
Insiders reveal ongoing talks between the U.S. Justice Department and Binance, exploring a settlement that might involve criminal charges against Binance founder Changpeng Zhao. The agreement aims to conclude an investigation into alleged money laundering, bank fraud, and sanctions violations.
Following a Bloomberg report on November 20, Binance’s native token, BNB, experienced an 8.5% surge to $266.42. As of the latest update, the token is trading at $259, reflecting a 4.6% increase in the last 24 hours.
The details of the proposed resolution, including the specific charges and timeline, remain unspecified. However, sources suggest that Binance is expected to pay over $4 billion in potential settlement fees, marking one of the largest fines in the history of criminal cryptocurrency cases.
Matt Walsh, founding partner at crypto venture firm Castle Island Ventures, commented, “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.”
Cryptocurrency Trading Volumes Surge Amidst Binance News
In the wake of the latest developments, trading volumes in the cryptocurrency market have experienced a significant surge. Over the past 24 hours, trading volumes soared to $55 billion, marking a substantial 37% increase. Notably, the prices of the largest cryptocurrencies by market capitalization showed minimal reaction to these changes, except for BNB.
The Securities and Exchange Commission (SEC) initiated legal action against Binance and its founder Changpeng Zhao on June 5, citing 13 charges, including the sale of unregistered securities. On June 6, the regulatory body sought to freeze digital assets from the American division of the exchange. Shortly after, users faced restrictions on depositing dollars, leading to sell-offs by those seeking to withdraw funds in fiat.
By June 17, the SEC and Binance reached an agreement regarding client funds in the U.S., allowing the exchange to resume the withdrawal of assets. However, the company cautioned that the situation could undergo further changes.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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