The U.S. Department of Justice seeks a $4 billion settlement with Binance. Is this good news or bad news?
Is $4 billion enough to dispel regulatory FUD for the industry?
On Monday, November 20, local time in the United States, according to Bloomberg, the U.S. Department of Justice will seek a settlement of more than $4 billion from Binance, the world's largest cryptocurrency exchange, to resolve a years-long investigation into Binance. This investigation involves the U.S. Department of Justice's potential allegations of money laundering, bank fraud, and sanctions violations against Binance and its founder Changpeng Zhao (CZ), and this settlement will resolve these allegations.
According to Bloomberg, the agreement has been seeking a compromise that would allow Binance to continue operating rather than causing it to collapse and negatively impact investors. If Binance and the Department of Justice reach an agreement on a deferred prosecution agreement, the Department of Justice will file a criminal complaint against the company. The Department of Justice will not proceed with the prosecution as long as the company meets the specified conditions, which usually include paying a large fine and agreeing to state the facts of its misconduct in detail, and will establish a process to monitor the company's compliance.
Matt Walsh, founding partner of crypto venture capital firm Castle Island Ventures, said: "Settling with regulatory terms may be a compromise that protects investors while allowing Binance to choose to move towards a more institutional and compliant future."
Regarding possible sanctions violations, the Justice Department has been investigating whether Binance helped evade U.S. sanctions on Iran and Russia, a person familiar with the matter said. Binance has also come under scrutiny for whether it allowed transactions that helped fund Hamas.
As of press time, Binance and the U.S. Department of Justice declined to comment. The investigation is jointly led by the Criminal Justice Department's Money Laundering and Asset Recovery Section, the National Security Division, and the U.S. Attorney's Office in Seattle. People familiar with the matter said an announcement on the case could be released before the end of the month, but the situation remains uncertain.
The U.S. Department of Justice seeks a $4 billion settlement with Binance. Is this good news or bad news?
Market funds are expressing their views
After the news was released, BNB surged in a short period of time, soaring from around US$245 to around US$263, and is currently trading at US$265.
At present, the cryptocurrency community has two reactions to this matter: most people think this is a good thing, because after reaching a settlement, Binance will be able to go into battle with ease, resolve all relevant criminal charges, and consolidate its position as the world's largest crypto exchange. The settlement with the US Department of Justice will also help the US Securities and Exchange Commission's case against Binance to a large extent. Twitter user @4lex4 said that the US Department of Justice is in a way a one-handed cover, and Binance's failure to lose the battle with the Department of Justice is a natural advertisement. Many people also believe that after this incident, users will not be FUD about the regulatory pressure related to Binance, which will lead to a run.
Those who are pessimistic about this matter believe that this revelation does not represent the details of the final settlement between the U.S. Department of Justice and Binance; whether to admit illegal acts, whether to conduct follow-up monitoring and whether Binance can meet the subsequent conditions will become a question mark, and these uncertainties will bring considerable pressure to the prospects of the entire crypto market. Secondly, the settlement with the Department of Justice does not mean a settlement with the U.S. SEC, especially as there is no conclusion on whether the tokens sold are securities.
Original | Odaily Planet Daily
Author | jk
