US Department of Justice Discusses Imposing 5.2 Trillion Won Fine on Binance

CEO Changpeng Zhao Under Review for Indictment

The U.S. Department of Justice is discussing plans to indict the CEO of Binance, the world's largest cryptocurrency exchange, on money laundering charges and impose a fine of $4 billion (5.2 trillion won).

On the 20th (local time), Bloomberg News reported, citing sources, that the U.S. Department of Justice is negotiating a deal with Binance based on these terms.

This is a measure to conclude the investigation that the Department of Justice has been conducting since around 2020 regarding Binance's alleged money laundering, bank fraud, and sanctions violations. The negotiation details are expected to be announced as early as the end of this month.

If Binance agrees to pay the $4 billion fine, it is expected to be one of the largest fines ever imposed in a cryptocurrency crime case.

This discussion is seen as a way to allow Binance to continue its operations while minimizing negative impacts on the cryptocurrency market and investors. Since Binance accounts for 40% of the global cryptocurrency market, a sudden shutdown of its operations could significantly shake the market.

Binance CEO Changpeng Zhao, who is expected to be indicted by the U.S. Department of Justice, is currently reported to be staying in the United Arab Emirates (UAE), which does not have an extradition treaty with the United States.

Binance is facing intense scrutiny from U.S. regulatory authorities. In June, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance, alleging mismanagement of customer funds, misleading investors and regulators, and violating securities regulations. In March, the U.S. Commodity Futures Trading Commission (CFTC) also sued Binance for failing to properly report derivatives and other products.

This content was produced with the assistance of AI translation services.