Major Cryptocurrency Exchange Settles with US Government, Agrees to Pay $4 Billion

World's Largest Cryptocurrency Exchange Resolves $4 Billion Agreement with U.S. Government Amid Regulatory Scrutiny.

Nov 21, 2023 - 13:13
Nov 21, 2023 - 13:13
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Major Cryptocurrency Exchange Settles with US Government, Agrees to Pay $4 Billion
Major Cryptocurrency Exchange Settles with US Government, Agrees to Pay $4 Billion

The world's largest cryptocurrency exchange has reached an agreement with the U.S. government to pay over $4 billion, according to an insider source. The deal, shrouded in secrecy until an official announcement, follows months of allegations against Binance for operating as an unregistered securities exchange and violating multiple U.S. securities laws.

Bloomberg first reported the substantial settlement in the case, which mirrors charges faced by FTX, the second-largest cryptocurrency exchange that collapsed last year. Binance, a Cayman Islands limited liability company led by CEO Changpeng Zhao, faced accusations ranging from unregistered securities exchange operations to diverting customer funds and concealing massive commingling of investor assets.

The lawsuit, filed by the U.S. Securities and Exchange Commission, prompted Binance to assert cooperation with the investigation while criticizing the agency for unilateral action. The cryptocurrency industry, grappling with scandals and market upheavals, faces increased scrutiny as regulatory bodies seek to enforce compliance.

This development echoes recent legal actions in the cryptocurrency space, with Sam Bankman-Fried, founder of a failed cryptocurrency brokerage, convicted of fraud for embezzling over $10 billion from customers and investors. As the industry navigates regulatory challenges, this settlement marks a pivotal moment in addressing alleged wrongdoings within the largest cryptocurrency exchange.

Also Read: SEC Pauses Decision on Bitcoin ETFs by Hashdex and Grayscale Amid Rising Expectations

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