The United States Justice Department is reportedly asking for over $4 billion from Binance to settle a long-standing investigation into the cryptocurrency exchange, Bloomberg reports.
To put things into perspective, the possible fine would be three times the size of the HSBC forfeitures.
It should also be noted that the settlement discussions reportedly allow for the possibility that Changpeng Zhao, the founder of Binance, might face criminal charges in the U.S.
These charges would address allegations of money laundering, bank fraud, and violations of sanctions.
Binance’s tumultuous year
As reported by U.Today, there have been numerous reports about Binance potentially facing criminal charges from the U.S. Justice Department.
Binance’s challenges have been mounting throughout the year. The crypto giant is in the middle of a tumultuous period marked by executive departures, layoffs, and a slip in market dominance.
The exchange, once at the pinnacle of the crypto market, now contends with internal strife and a reduced market share.
The cryptocurrency community watches the unfolding Binance saga with bated breath, and prominent figures like Mike Novogratz are weighing in with optimism.
The well-known investor took to X to share his positive outlook right after the bombshell news broke. “Binance settling with the US regulators would be super bullish!! Not sure if reports are true but I personally am hoping for a settlement and for the industry to move forward,” he said.
In the wake of these developments, Binance’s native token, BNB, has reacted positively, with a surge of more than 7% following the news, according to CoinGecko data. Bitcoin, the flagship cryptocurrency, is also nearing the $38,000 level once again.
This uptick is a strong signal from investors who seem to share Novogratz’s bullish stance.