Binance faces historic penalty as DOJ settlement talks suggest over $4 billion Binance faces historic penalty as DOJ settlement talks suggest over $4 billion
According to the report, the negotiation also raises the possibility of criminal charges against Binance founder Changpeng 'CZ' Zhao
2 min read
Updated: Nov. 20, 2023 at 6:28 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Binance Holdings is in talks with the U.S. Justice Department (DOJ) to resolve allegations of criminal activities, including money laundering, bank fraud, and sanctions violations, via a settlement that could exceed $4 billion, Bloomberg News reported Nov. 20, citing sources.
The development follows a years-long investigation by U.S. authorities into Binance’s operations related to compliance with anti-money laundering regulations and its adherence to international sanctions.
According to the report, the negotiation also raises the possibility of criminal charges against Binance’s founder Changpeng Zhao — underscoring the allegations’ severity.
The news initially caused a massive sell-off in BNB, causing the price to crash to $233.46. However, the token quickly recovered to previous levels and surged another 10% to $269 before seeing a minor retracement.
BNB is currently trading at $260.82, up 6.82% over the past 24 hours, according to CryptoSlate data.
Largest settlement in crypto history
Binance, founded in 2017, has rapidly grown into a titan in the crypto industry, offering various services, including cryptocurrency trading, blockchain technology, and token sales. However, this growth has not been without scrutiny, as regulators worldwide have raised concerns about the platform’s operations and its potential role in facilitating illegal financial activities.
The proposed settlement, if agreed upon, could mark one of the largest penalties in the history of the cryptocurrency industry. It would signal a significant shift in the regulatory landscape, highlighting the increasing efforts of U.S. authorities to clamp down on malpractices in the burgeoning crypto market.
The implications of such a settlement are extensive. A financial penalty of this magnitude could set a precedent for how regulatory bodies handle similar cases. Moreover, it could prompt other cryptocurrency platforms to strengthen their compliance mechanisms to avoid similar scrutiny.
Representatives from Binance and the U.S. Justice Department have not made official statements regarding the ongoing negotiations as of press time.
The situation remains dynamic, and its outcome could significantly impact the crypto industry.
Mentioned in this article
Author 
Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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In this article
BNB, or Binance Coin, is a cryptocurrency created by Binance.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.