Reported by Solomon Oladipupo

US prosecutors are mulling over whether to initiate criminal charges against Binance, thereby turning the heat on 13 civil chargesfiled by the securities watchdog against the top crypto exchange earlier in June, Semafor reported today (Wednesday), citing insider sources. However, the Department of Justice (DOJ) is worried that such action could lead to a bank run, throwing the exchange into a position similar to that of the now-bankrupt crypto exchange, FTX. 

According to the report, the DoJ is contemplating opting for other measures such as fines and deferred or non-prosecution agreements (NPAs). An NPA means that the federal prosecutor, despite believing that a crime has been committed, will delay prosecution in exchange for the crypto firm’s compliance with certain conditions. 

These conditions could range from payment of fines and the institution of corporate reform to full cooperation with the department’s probe. In such cases, the charges are dismissed if the defendant complies with the conditions.

Binance, the biggest global crypto exchange in terms of trading volume, entered the US crypto market in September 2019 after obtaining registration from the Financial Crimes Enforcement Network (FinCEN) for its affiliate in the country. The local unit was to serve US customers independently of the global exchange.

Read full report: https://www.financemagnates.com/cryptocurrency/doj-weighs-fraud-charges-against-binance-worried-about-bank-run-report/amp/