Cryptocurrency Exchange

Binance to face fraud charges as prosecutors worry about bank run

Binance, the biggest crypto exchange, is on the verge of facing fraud charges. The charges are levied by the US Department of Justice.

Meanwhile, the prosecutors are figuring out alternatives to avoid an FTX-style bank run. As soon as the news got out, both Bitcoin and BNB tokens took a dip in market price. 

US officials were quick to address the situation while expressing their concerns. The prosecutors are aware that such charges can take down the crypto industry altogether. Thus, the Semafor and the officials are considering alternatives like fines and non-prosecution or deferred agreements. 

There have been no official statements from Binance’s end. Similarly, the Justice Department has also refrained from releasing any official statements. However, Changpeng Zhao, the Binance CEO, addressed the situation over Twitter/X.

Zhao scrutinized the latest post by CoinDesk, stating how little validation, research, or even logical reasoning is being done in such cases. The CEO continued to talk about the board vote, saying how 1 out of 3 votes holding out will not stop anything.

In case it’s a shareholder vote, Brian S is the CEO and not a VC or investor. It is all just FUD 4, added the Binance CEO.

Regardless of Zhao’s statements, the US officials’ criticism of Binance has been publicly known already. Earlier in 2023, the CFTC (Commodity Futures Trading Commission) sued Binance and Zhao for willfully evading US laws.

However, the authorities are aware of going after an institution as huge as Binance. With FTX’s downfall, billions of dollars evaporated from the crypto market. It ruined the industry’s image while pushing large lending businesses to reach bankruptcy court.

Seeing how the crypto market has been operating since then, the Binance situation is bound to take a complicated turn. 

Lili Chuang

Lili Chuang is a finance professional with an experience of over a decade in news writing. Recently, she has joined the CoinNewSpan team as a sub-editor. She is a firm believer of blockchain technology and cryptocurrencies. She curates contents regarding the latest insights into the crypto-market. In her free time, she loves to explore new places and connect with influential people of crypto space.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button