The US stock market’s investigation against Binance, which began in June, took a new turn after the crypto exchange signed a settlement with the United States Department of Justice.
Binance is not out of the woods yet. On November 21, the cryptocurrency giant agreed to a settlement with the US Department of Justice (DoJ) to end an investigation that began several years ago. Binance agreed to pay two fines of $3.4 billion and $968 million to two agencies under the US Treasury Department.
Binance’s token boss, Changpeng Zao (“CZ”) pleaded guilty and he was forced to resign. The billionaire was ordered to pay a criminal fine of $50 million and bail of $175 million to be released. While the latter is not authorized to leave the United States, his prison sentence will be known on February 24, 2024.
Enhanced complaint
If the signing of this agreement would end a specific investigation, others are still ongoing. In June, the US exchange watchdog, the SEC, took Binance and its former boss to court for circumventing regulations. In particular, the SEC criticizes Binance for allowing US residents to use its platform despite not being registered with US authorities.
Since the agreement reached in mid-November between Binance and the DoJ, it has been unclear whether the SEC intends to pursue proceedings against the crypto exchange. This Friday, the U.S. exchange watchdog said the Nov. 21 deal would strengthen its complaint against Binance.
The SEC “argued that the Washington federal court hearing the case should consider the admissions of Binance and the company’s former CEO Changpeng Zhao as part of the Nov. 21 settlement,” Bloomberg clarifies.
While Binance’s global market share fell from 70% last January to 45% in November, the crypto exchange may once again go through a period of turbulence.