The US Department of Justice (DOJ) is reportedly considering legal action against popular cryptocurrency exchange Binance. Any potential lawsuit will also affect some of the platform's executives, notably its founder and CEO, Changpeng Zhao.
The US Department of Justice (DOJ) has been looking into the company's operations since 2018. These investigations regarding Binance's activities apply mainly to its compliance with anti-money laundering laws and regulations within the United States.
According to a recent report by Reuters, US prosecutors are uncertain whether the evidence gathered against the crypto exchange will suffice to bring criminal charges. The report also stated that Binance's defense attorneys recently met with Justice Department officials to negotiate a plea deal.
Commenting on this report via its official Twitter page, Binance claimed that the Reuters report was completely incorrect. The exchange also noted in its tweet,
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
If the DOJ decides to move forward with legal action, it could have significant implications for Binance and the broader cryptocurrency industry. Binance is one of the largest cryptocurrency exchanges in the world, with a daily trading volume of over $2 billion.
As of now, it is still unclear if the DOJ will take any action against Binance. However, the potential legal action serves as a reminder of the need for cryptocurrency companies to adhere to regulations and ensure compliance with the law.
The Binance crypto exchange has often had run-ins with regulatory authorities over compliance with existing laws. However, in most cases, the exchange has overcome those hurdles and continued business in numerous countries bar the U.S.
