During the negotiations between the US Department of Justice and Binance, the parties discussed the possibility of Binance founder Changpeng Zhao facing criminal charges to address investigations into money laundering, bank fraud, and sanctions violations.
Zhao, also known as “CZ,” currently resides in the United Arab Emirates (UAE), which does not have an extradition treaty with the US. However, he can still voluntarily appear in the US.
Binance did not respond to the information, and the US Department of Justice declined to comment.
Binance founder Changpeng Zhao
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According to insider sources, the parties may issue an announcement at the end of this month, although the situation could still change.
The BNB cryptocurrency, created by Binance and based on the BNB Chain blockchain, increased by 8.5% to $266.42 USD after Bloomberg reported on the negotiations.
“A settlement agreement that includes monitoring provisions could be a compromise to protect investors and allow Binance to operate in a more legally compliant manner in the future,” shared Matt Walsh, a founding partner at the cryptocurrency investment firm Castle Island Ventures.
The timing and structure of the settlement agreement are still unclear. However, Binance may face a fine of over $4 billion USD, one of the heaviest penalties in the cryptocurrency industry.
The investigation into Binance is being led by the Anti-Money Laundering and Asset Forfeiture Division, along with the US Department of Justice’s National Security Division and the US Attorney’s Office in Seattle.
The aim of the agreement is to achieve a balance that allows Binance to continue operating rather than causing a collapse and cascading impact on the market and virtual currency holders, according to insider sources.
