Binance can settle the DOJ case, but it will cost $4 billion.
The US Department of Justice has put a price tag on what the world's largest crypto exchange will need to settle the case, and that's no small sum. However, the news was seen as positive by traders and investors loading BNB.
On November 20, Bloomberg reported that the US Department of Justice is seeking more than $4 billion from Binance Holdings. The payment is part of a proposal to end a years-long investigation.
Binance off the hook?
According to the report, the negotiations between the DOJ and Binance include the possibility of its founder Changpeng ‘CZ' Zhao facing criminal charges in the US.
The Justice Department has been investigating the company since 2020 for money laundering, bank fraud and sanctions violations, he added.
Moreover, the agreement allows Binance to continue operating in the US. This would help avoid a major crash and black swan for the crypto markets but would still penalize Binance.
Additionally, the deal would be one of the largest settlements in crypto history if agreed upon. At the time of writing, there was no response from Binance or CZ on its X feed.
Matt Walsh, founding partner of crypto venture firm Castle Island Ventures, told Bloomberg.
“An agreement with a monitoring provision could be an agreement that protects investors and allows Binance to move towards a more institutional and compliant future.”
Read More: Top 7 Binance.US Options That Support US Dollar Withdrawals
The DOJ is aiming for another big win in regulating crypto exchanges. This comes after Sam Bankman-Fried was charged with fraud and embezzlement earlier this month.
However, unlike the SBF, CZ currently resides in the United Arab Emirates, where there is no extradition treaty.
The DOJ probe is separate from two lawsuits filed this year by the Securities and Exchange Commission and the Commodity Futures Trading Commission in the U.S.'s ongoing war on crypto.
BNB price moves
Regardless, crypto traders have been given the opportunity to solve a major headache for Binance.
BNB prices jumped over 7% after the news broke 12 hours ago. The exchange's asset is currently trading at $264, its highest price since early June.
In the months following the SEC lawsuit, Binance Coin prices have slipped by 33%. As a result, the asset hit its lowest price since mid-2022, reaching $205 in mid-October.
Additionally, BNB is down 61.6% from its May 2021 high of $686.
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