• U.S. Department of Justice (DOJ) is deliberating potential fraud charges against Binance, a cryptocurrency exchange giant.
• DOJ officials are concerned that an indictment of Binance might trigger a bank run and create panic throughout the broader cryptocurrency markets.
• Prosecutors are contemplating levying fines or considering deferred or non-prosecution agreements to hold Binance responsible for its alleged criminal activities.
U.S. Department of Justice weighs Potential Charges Against Binance
The United States Department of Justice (DOJ) is weighing criminal charges against the popular cryptocurrency exchange giant, Binance, according to reports from Semafor today citing sources familiar with the matter.
Concerns over Market Panic
Officials are concerned that an indictment of Binance might trigger a bank run akin to what happened with FTX, which is now insolvent, causing panic throughout the entire crypto market if it were to occur.
Alternative Options Being Considered
In lieu of criminal charges, prosecutors are exploring alternative options such as levying fines, or considering deferred or non-prosecution agreements in order to hold Binance liable for any alleged criminal activity without causing market disruption and panic.
Ripple Accuses SEC Of Weaponizing Quarterly Reports In Court
In related news, Ripple has accused the Securities and Exchange Commission (SEC) of weaponizing the company’s quarterly reports in court filings against them in their ongoing legal battle over XRP being classified as a security by regulators.
Total Value Locked Down Across DeFi Protocols
Additionally, since the Curve Finance attack earlier this month, total value locked across decentralized finance (DeFi) protocols has fallen more than $3 billion USD as users pull their funds out due to fear of further hacks and exploits on DeFi platforms resulting in financial loss for investors and users alike.