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According to multiple sources, the settlement, which will be unveiled today at 3 p.m. ET, involves the resolution of charges related to the <a href="https://financefeeds.com/binance-to-cut-30-of-workforce-by-end-of-2023/" rel="noopener noreferrer nofollow">Bank Secrecy Act</a> and other legal statutes. The deal involves multiple U.S. agencies including the Justice Department, the Commodity Futures Trading Commission, and the Financial Crimes Enforcement Network.
While the exact terms of the deal are not yet public, there is speculation that Binance could be fined more than $4 billion as part of the agreement, which may also involve a deferred prosecution arrangement. Binance <a href="https://financefeeds.com/binance-cz-refutes-any-connection-with-commex/" rel="noopener noreferrer nofollow">CEO Changpeng 'CZ' Zhao</a> has been in negotiations that could potentially include facing criminal charges, though it is not clear if he will be charged separately from the settlement.
Interestingly, Binance executed a transfer of 3.9 billion USDT, a stablecoin pegged to the US dollar, within its own wallets on the Tron blockchain. The transaction, which is reported to be the eighth-largest of its kind on Tron, involved moving the funds from “Binance-Cold 2” to “Binance 3,” followed by a subsequent transfer of 300 million USDT to a separate wallet.
The timing of the large-scale transfer has prompted speculation among social media users and market observers. Questions have been raised about the origins of these funds and whether they are intended to cover the speculated fine. While some are seeking to establish a connection between the transfer and the DOJ's reported settlement, no official statement from Binance has confirmed any link between the two events.
The DOJ has been <a href="https://financefeeds.com/cz-to-cut-dominant-stake-in-binance-us/" rel="noopener noreferrer nofollow">probing Binance</a> since at least 2022 over concerns related to money laundering and sanctions violations.
Binance faced legal action from the CFTC earlier this year, and the SEC filed civil charges against Binance-related entities and Zhao in June. The SEC's allegations centered on deceptive practices, conflicts of interest, and evasion of legal responsibilities.
The US Department of Justice’s national security division also investigated whether Binance or its executives violated US sanctions related to&nbsp;<a href="https://financefeeds.com/russia-delays-digital-ruble-pilot-to-may/" rel="noopener noreferrer nofollow">Russia’s annexation</a>&nbsp;of Crimea and interference in Ukraine. This probe was separate from the ongoing inquiry by the DOJ’s criminal division into Binance’s compliance with anti-money laundering and tax laws.

US to officially announce settlement with Binance at 3 p.m.

FinanceFeeds

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