- Binance is asked to pay $4 billion as part of a proposed resolution with the DOJ.
- Binance seeks a “deferred prosecution agreement” to continue its operations without direct prosecution.
- The final decision could come by the end of this month.
Binance Holding Ltd. is reportedly asked to pay $4 billion as part of a proposed resolution with the United States Department of Justice, as per Bloomberg.
The report said that the settlement proposal between the DOJ and Binance comprises the probability that the cryptocurrency exchange’s founder, Changpeng “CZ” Zhao, would face criminal charges in the U.S. This agreement could fix the years-long investigation into the exchange firm for alleged violations of “money laundering, bank fraud, and sanctions violations”.
The news article also stated that Binance seeks a “deferred prosecution agreement” to continue its operations without direct prosecution.
Moreover, the DOJ reportedly has three-fold terms for this agreement—besides the $4 billion payment—including Binance’s admission of wrongdoing in a detailed statement of facts. Moreover, the U.S. authorities require the exchange’s commitment to stringent monitoring, which would ensure compliance with laws and regulations moving forward.
Bloomberg also detailed that a final decision could come by the end of the month; however, the condition “remains fluid”.
CZ currently resides in the United Arab Emirates, which means it does not have any mutual extradition agreement with the U.S. Therefore if the DOJ charged him, they would require extradition from a jurisdiction with a U.S. treaty, or he could set foot in the U.S. soil to face those charges.
Binance and CZ have been grappling with a few charges thrown at him by various government entities in the U.S., encompassing two enforcement actions from the Securities and Exchange Commission in June and the Commodity Futures Trading Commission in March.The slurry of legal imbroglio Binance has faced this year has notably impacted its U.S. unit, where former Binance.US CEO Brian Shroder left in September following a company-wide job cut.
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