The US Department of Justice is considering filing fraud charges against Binance, one of the biggest cryptocurrency exchanges in the world. Officials are hesitant due to concerns about a potential run on the exchange, similar to FTX’s case in 2022. To lessen the possible harm to customers, authorities are considering alternatives including fines or non-prosecution agreements.
Its regulators have already been looking into Binance. Allegations of transgressions of the nation’s sanctions against Russia have given rise to a criminal inquiry. Binance faced a lawsuit by the US SEC in June for unregistered securities and unlawful operations. In March, the Commodity Futures Trading Commission investigated Binance and CEO CZ for trading law violations.
The impact of charging Binance or its CEO remains uncertain. The crypto community closely monitors similar cases involving industry figures like Sam Bankman-Fried and Alex Mashinsky. Both are facing fraud charges for illegal activities at their companies.
US Authorities Consider Charges Against Binance.US, Cryptocurrency Market Tense
Within an hour of the news surfacing, the price of Bitcoin (BTC) and Binance Coin (BNB) both decreased by about 2.5% in response to allegations of possible charges against Binance.
No formal charges have yet been brought against Binance or its American subsidiary, Binance. The US. However, the situation has sparked worries in the cryptocurrency community, particularly in light of Binance’s recent announcement of the opening of Binance Japan and reports that the exchange conducted a significant amount of cryptocurrency-related business in China while considering closing down Binance.US to protect its operations.
Binance denies conducting business in China and remains silent on rumors of closing US operations. The crypto market eagerly anticipates US authorities’ updates on potential charges and their impact on Binance and the industry.
