The U.S. Department of Justice is considering slapping criminal charges against cryptocurrency exchange Binance (CRYPTO: BNB) and specific individuals related to the firm, including its CEO and founder Changpeng Zhao.
Prosecutors are split on whether to pursue the case vigorously or wait to review further evidence, according to a Reuters story citing four people familiar with the situation.
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The alleged offenses stem from a 2018 inquiry into Binance's compliance with AML regulations and fines.
According to reports, prosecutors from the National Cryptocurrency Enforcement Team, the Western District of Washington U.S. Attorney's Office, and the Money Laundering and Asset Recovery Section (MLARS) of the Justice Department are all participating in the probe.
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According to Reuters, Binance's defense lawyers have met with DOJ officials to discuss possible plea deals.
Binance is said to have argued that a criminal prosecution would have a negative impact on the cryptocurrency market, which is already reeling from the fallout from the collapses of Terra and FTX.
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Binance asserted in a statement posted on Twitter that "Reuters has it wrong again" and that "We don't have any insight into the inner workings of the US Justice Department, nor would it be appropriate for us to comment if we did."
Reuters has it wrong again.
— Binance (@binance) December 12, 2022
Now they're attacking our incredible law enforcement team. A team that we're incredibly proud of - they've made crypto more secure for all of us.
Here’s the full statement we sent the reporter and a blog about our remarkable law enforcement team.
Ongoing Investigations Against Binance
Binance was apparently under investigation by the DOJ and IRS in 2021, according to a Bloomberg story.
It is unclear whether the Reuters claim refers to the same inquiry.
In May 2021, Binance posted a statement on Twitter stating that it had "worked hard to build a robust compliance program that incorporates anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity."
The exchange added that it "takes our legal obligations very seriously and engages with regulators and law enforcement in a collaborative fashion."
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Photo: Courtesy of binance.com