As part of a long-running investigation against Binance, the US Department of Justice (DOJ) has requested $4 billion to investigate the case. Without returning to this legal saga, let’s see what this option to end the crisis could imply for the company and its boss, Changpeng Zhao (CZ).
The choice of stability in a tumultuous context for Binance
What should we think of the $4 billion fine demanded from Binance for the abandonment of long-considered proceedings by the US Department of Justice? The question surrounding this sanction gives rise to debate and discussion.
We wonder if the charges brought against the exchange were not, ultimately, a pure tactic aimed at controlling the main players in the industry. Regardless, some experts have a strong opinion on the matter.
According to them, the company should accept the proposal which would ultimately allow it to regain some stability. This, in a context where regulators are going after the crypto firm, certain lawsuits, notably those of the SEC and the CTFC, are also current.
The option of paying the fine can be a good solution for the company, which can thus avoid a lawsuit that could destroy it. Moreover, unexpectedly, BNB, Binance’s native crypto and bitcoin (BTC) both saw their prices increased by 8% and 2% respectively. But this choice could ultimately be nothing more than a headlong escape.
Uncertainty surrounding the fate of the boss of Binance?
If Binance’s acceptance of the fine imposed on it could be interesting for the crypto market, the same could not be said for its boss. Indeed, this choice in no way protects Changpeng Zhao from the accusations against him.
Thus, CZ could still face criminal prosecution in the United States for money laundering, bank fraud and sanctions violations. At least that’s what some sources suggest about the businessman who resides in the United Arab Emirates. One country, by the way, has not signed an international treaty on extradition.
According to these sources, CZ is under investigation for his personal involvement in Binance financial transactions. Operations involving a mysterious executive, Guangying “Helina” Chen. With this, they would have created Key Vision Development Limited, a holding company appearing as a shell company.
While the existence of this entity controlled by Changpeng Zhao is questionable, we can think that despite a potential settlement of the fine, the matter might not end there. Especially since, according to some experts, paying the fine could ultimately prove to be much riskier for Binance than it seems.
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