As of August 2, 2023, there have been reports indicating that the United States Department of Justice is deliberating on whether to pursue charges of fraud against cryptocurrency exchange Binance.
The officials are cautious about the potential repercussions of an indictment, fearing it could trigger a run on the exchange, similar to what happened with FTX in November 2022. This concern has led them to consider alternative measures, such as imposing fines or negotiating non-prosecution agreements with Binance, in order to minimize harm to consumers.
It’s worth noting that Binance has been under scrutiny in the U.S. previously. There was a criminal probe investigating potential violations of the country’s sanctions on Russia, and in May, the U.S. Securities and Exchange Commission filed a lawsuit against the exchange, accusing it of offering unregistered securities and operating illegally. Additionally, the Commodity Futures Trading Commission took action against Binance and its CEO, Changpeng Zhao, in March for alleged violations of trading and derivatives regulations.
As of now, no formal charges have been filed against Binance or its U.S. affiliate, Binance.US. The situation remains subject to ongoing investigation and deliberation by the relevant authorities.
