Binance May Have To Pay $4 Billion To US As Part Of Proposed Resolution To End Criminal Case: Report

The US Justice Department has sought over $4 billion from cryptocurrency exchange platform Binance Holdings as part of a proposed resolution of a years-long investigation, reported Bloomberg News citing people familiar with the matter.

According to the report, talks between the Justice Department and Binance include the possibility that Binance's founder, Changpeng Zhao, would face criminal charges in the US.

Any resolution will likely impact investors' sentiment toward crypto, which has taken a hit following government investigations and charges against companies and individuals in the industry, including the FTX collapse.

The digital asset industry was also shaken by several high-profile collapses last year. However, recently the crypto market is looking to regain some footing after securing a vote of confidence from some traditional financial institutions.

One source familiar with the investigation said the long-running government probe was nearing its end, but refrained from providing specific information on penalties or exact timeline. The Bloomberg report said an announcement on the resolution can be expected as soon as the end of this month.

Binance under scanner for years:

The crypto exchange platform Binance has been under the Justice Department's scrutiny since at least 2018, Reuters reported last year. In December 2020 Federal prosecutors asked the company to provide internal records about its anti-money laundering efforts, and communications involving Zhao, as per Reuters.

The DOJ investigation is one of a string of legal and regulatory Binance faces in the United States.

In June, the Securities and Exchange Commission (SEC) sued Binance and Zhao, accusing them of operating an "elaborate scheme to evade U.S. federal securities laws."

Binance rejected the SEC's allegations adding that it would "vigorously defend" its platform.

The Commodity Futures Trading Commission also filed a lawsuit against the exchange in March for "willful evasion" of US commodities law, alleging that Binance and Zhao ran an "illegal" exchange and a "sham" compliance program.

Zhao termed those charges an "incomplete recitation of the facts."

With crypto markets subdued compared with the highs of 2021, Binance has also experienced an executive exodus and falling market share.

How is the crypto market performing today?

The cryptocurrency market traded in the green on Tuesday as the global crypto market cap was up 0.29% at $1.41 Trillion. The world's largest cryptocurrency Bitcoin price was up 0.50% at $37,356.16 per token. Ethereum price was up 0.55% at $2,013.23 per token.