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Crypto investors cheer on the Binance criminal probe resolution

Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, and Litecoin are seen in front of a displayed Binance logo in this illustration taken, June 28, 2021. REUTERS/Dado Ruvic/Illustration/File photo

Crypto investors cheer on the Binance criminal probe resolution. An agreement that permits the extensive exchange to carry on operations would eliminate a persistent danger to the larger market, according to cryptocurrency investors who have welcomed the possibility of a resolution to a protracted criminal probe into Binance by the United States.

According to a Bloomberg story on Monday that cited people familiar with the talks, the U.S. Justice Department (DOJ) is requesting more than $4 billion from Binance as part of a proposed investigation resolution.

Without providing any details, a person knowledgeable about the probe informed Reuters that it was almost finished. According to Bloomberg, a settlement announcement might be made soon after this month’s end.

The leading cryptocurrency, Bitcoin, which serves as a gauge of public opinion, seemed unfazed by the news and was down roughly 2.6% on Tuesday. The fourth-biggest digital coin, Binance’s token BNB, increased 4.6% on Tuesday, building on gains of up to 6% the day before.

According to four cryptocurrency investors, the idea that Binance could handle a $4 billion payment is reflected in the market’s response. According to the two parties, a settlement would allow Binance to carry on as usual and stop a chaotic unwinding from causing a market sell-off.

“This news is a positive development,” expressed Anatoly Crachilov, CEO of Binance’s customer, London-based Nickel Digital Asset Management.

Crachilov stated that a $4 billion settlement is “something that potentially Binance can handle,” pointing to data on trading volumes and commissions available to the public as proof that the company has been “generating billions.”

Unknown is the precise size of Binance’s cash reserves. It is a privately held business that withholds fundamental financial data like revenue and profit. It claims to be debt-free and profitable.

The DOJ or Binance did not immediately answer requests for comments. According to Reuters last year, the DOJ has been looking into Binance and its billionaire CEO Changpeng Zhao since at least 2018 for possible charges related to criminal sanctions violations and money laundering conspiracy.


Binance has long dominated cryptocurrency despite having lost market share this year. According to CCData, it accounted for around half of futures trades and about a third of spot cryptocurrency trading last month.

Due to Binance’s history of legal and regulatory issues, investors have been cautious about the risks it poses to the larger market due to its status for years.

For instance, Bitcoin dropped as much as 6% following the Securities and Exchange Commission of the United States suing Binance and Zhao in June for allegedly breaking federal securities laws. Binance refuted the accusations made by the SEC.

According to Sui Chung, CEO of cryptocurrency index provider CF Benchmarks, any conclusion of the DOJ investigation would eliminate the risk of Binance’s abrupt collapse from the cryptocurrency market.

“Binance disappearing overnight remains a potential systemic risk to the crypto market,” Chung stated. But that won’t be the case if a settlement is reached. Binance would undergo gradual changes.

Some investors claimed that Zhao’s fortune would be enough to pay for any settlement with the DOJ.

The London-based Altana Digital Assets Fund’s Samed Bouaynaya stated, “CZ himself can easily swallow this.

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