On whether to pursue Binance, the most centralised exchange for cryptocurrencies, prosecutors are divided.

According to Reuters, the U.S. Department of Justice’s prosecutors are undecided on whether to bring charges against the cryptocurrency exchange Binance for money laundering and sanctions violations. Some of the parties concerned think there is sufficient evidence to sue the corporation, while others want more time to examine the information. At least six of the participating prosecutors think there is sufficient proof to bring charges against the company’s founder, Changpeng Zhao, also known as CZ.

Since 2018, the inquiry into the transaction has been ongoing. The Justice Department’s Money Laundering and Asset Recovery Section (MLARS), which would have to approve any money laundering accusations presented, might have slowed down the case’s progress. MLARS reportedly has a reputation for making decisions slowly, but new leadership has been in place since October. According to Reuters, the new CEO, Brent Wible, is known for taking cases more seriously.

According to sources, Binance is being looked into for violating criminal sanctions and sending money without a licence. There are many potential outcomes, and prosecutors have not yet determined whether to file charges. The Justice Department might sue the business and its executives, reach a settlement, or just end the case without taking any further action.

Similar events could occur if action is taken against Binance, as they did with the collapse of FTX earlier this year and the consequent decline in the price of Bitcoin and other cryptocurrencies. Since it is the biggest exchange in the world, any attempt to stop it may be, to put it mildly, disruptive. The possibility of FTX’s collapse spreading to other exchanges still exists, therefore this might happen soon.

Christopher Woodill

About ME

Enterprise technology leader for the past 15+ years…certified PMP, Six Sigma Black Belt and TOGAF Enterprise Architect. I collaborate with companies to help align their strategic objectives with concrete implementable technology strategies. I am Vice President, Enterprise Solutions for Klick Health.

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