- According to reports, the DOJ is willing to resolve criminal charges with Binance.
- Legal professionals have expressed doubts about the possibilities being explored for a possible settlement.
- Experts have expressed skepticism, while the cryptocurrency community has expressed tremendous excitement.
Many people in the cryptocurrency industry have been worried about what would happen if criminal charges were brought by the U.S. Department of Justice (DOJ) in response to its multi-year investigation into Binance, the largest cryptocurrency exchange in the world.
Though this worry might never come true, according to a recent Bloomberg story, legal experts are concerned by the settlement deal’s possible choices.
Experts Question Practicality of $4B Deal
According to Bloomberg, which cited people familiar with the situation, the U.S. DOJ was exploring a $4 billion settlement to drop criminal charges against Binance on Monday, November 20.Prosecutors reportedly hope to get to a resolution by the end of November 2023 that will permit the exchange to carry on with business as usual while averting further harm to users and the cryptocurrency industry.
Among the options mentioned is a full payment, subject to Changpeng “CZ” Zhao, the creator of Binance, being charged with a crime. Alternatively, a deferred prosecution agreement (DPA) could be reached between Binance and the DOJ. If Binance pays the $4 billion cost, acknowledges wrongdoing, and complies with certain terms, the DPA will allow the DOJ to pursue charges without prosecuting them.
Legal experts have issues about the options that have been suggested. Lawyer and well-known member of the cryptocurrency industry Carlos D’Angelo said that it would be “strange” for Zhao to wish to pay the huge sum of money and still be charged with a crime.
John Reed Stark, a senior lecturer at Duke University School of Law and a former SEC enforcement official, argued that Binance was not likely to follow a DPA. Stark emphasized that the company would be subject to 24-hour surveillance as part of a DPA and confess to offenses that would exacerbate legal issues in other jurisdictions.
The announcement of a possible settlement between Binance and the DOJ has been well received by the cryptocurrency community, despite concerns about the viability of the suggested settlement choices.
Possibility of Binary DOJ Agreement Creates Exuberant Excitement
Galaxy CEO Mike Novogratz asserted that the proposed settlement between the crypto exchange and the DOJ would be “super bullish!!”
Novogratz was not the only one to hold this view; well-known cryptocurrency trader Johnny said that Binance might finally allay concerns about its business practices.
The price chart reflects the excitement of the cryptocurrency community. Among the cryptocurrency assets ranked in the top 20 by market capitalization, Binance’s BNB is the only one that has gained more than 1% in the last 24 hours as of this writing. According to CoinMarketCap data, BNB has gained 2.82% in the last day and is currently trading at $253.19.
