The United States Department of Justice (DOJ) will announce its “cryptocurrency enforcement actions” later today. These actions include a resolution settlement involving the largest cryptocurrency exchange, Binance.
On Monday, Bloomberg reported that the U.S. DOJ is seeking approximately $4 billion from Binance after years of investigations involving the exchange’s role in criminal acts, such as aiding money laundering and wire fraud and violating U.S. sanction rules. The report also mentions the possible arrest of Binance’s CEO and co-founder, Changpeng Zhao (CZ).
According to the source, the crypto-based enforcement actions will be dispensed at a press conference presided over by U.S. Attorney General Merrick Garland by 3 PM Eastern Time (ET). As the legal tussle between the American agency and the cryptocurrency exchange heats, more clarity on how the settlement will be disclosed in a few hours.
U.S. DOJ vs. Binance
Part of the investigation carried out by the regulatory watchdog involves Binance’s allowing Russia-based customers to access its platform despite an outright restriction imposed by the European Union (EU) and the U.S.
The Justice Department also probes Binance for allowing trade across accounts owned by entities funding the Israel-Hamas war endeavors.
Seeking around $4 billion in settlement from the crypto custodian, the regulatory agency intends to reach a potential deferred prosecution agreement (DPA) with Binance. The agreement is a mechanism where criminal liabilities are resolved when the prosecutor and the defendant agree on some specified conditions.
Will Binance Pay $4B to DOJ?
While both parties involved have yet to give any official comment on the matter, market experts believe that a complete payment of such a voluminous amount from Binance will significantly affect the crypto industry since Binance holds more than 50% of the global crypto market share.
There is also speculation involving a trade Binance made in early November. On-chain data revealed that the exchange moved $3.9 billion from its cold wallet into one of its hot wallets. Speculators assume that the transferred amount is the settlement fund requested by the DOJ. However, the purpose of the funds remains unknown.
