The US Department of Justice is currently in talks with Binance and is seeking a settlement of over $4 billion in order to resolve an ongoing criminal investigation, according to sources familiar with the matter reported by Bloomberg.
This potential deal would allow the cryptocurrency exchange to continue its operations. CEO Changpeng ‘CZ’ Zhao may face criminal charges as part of the negotiations to address allegations of money laundering, fraud, and sanctions violations.
Neither Binance nor the Department of Justice have responded to requests for comment from The Block. The news of the potential deal has caused Binance’s BNB token to rise by 7.1% according to CoinGecko at 1:08 p.m. ET.
While an announcement regarding the settlement may be made before the end of the month, Bloomberg reports that the situation is still subject to change. Binance has a history of dealing with regulatory and enforcement actions from the US, with increased scrutiny this year.