According to a report from Bloomberg citing persons involved with the talks on November 20th, the US Department of Justice (DOJ) seeks payment for more than $4 billion from Binance Holdings as part of a possible settlement of a years-long probe.
Moreover, Binance’s previous competitor FTX went bankrupt last year, and the sector as a whole was thrown into disarray, but the industry is seeking to recover thanks to the support of more conventional financial institutions.
According to Bloomberg, a statement on the settlement might be made as soon as the month ends. Also, the investigation by the Department of Justice (DOJ) is just one of several legal and regulatory issues plaguing the largest cryptocurrency exchange in the United States.
For “willful evasion” of US commodities law, the CFTC filed suit against Binance and CZ in March, claiming that they ran an “illegal” exchange and a “sham” compliance program.
In June this year, the U.S SEC filed a lawsuit against Binance and CEO Changpeng Zhao, accusing them of engaging in a complex fraud to circumvent US federal securities laws. In reply, the exchange said it will “vigorously defend” itself against the SEC’s accusations.
The outcome of this intense battle will be keenly watched by investors and traders and will definitely have a significant impact on the crypto market as a whole.
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