Sources: US prosecutors are split on charging Binance and its executives over possible money laundering and sanctions violations and have discussed a plea deal

Splits between U.S. Department of Justice prosecutors are delaying the conclusion of a long-running criminal investigation …

Reuters 2022-12-12

Context & Ripple Effects

Binance had already been under a DOJ and IRS investigation involving money-laundering and tax enforcement before prosecutors reached this internal impasse. Later coverage places the split on the path toward a proposed DOJ resolution worth more than $4 billion, rather than a swiftly filed case.

First-order effects

The DOJ's divided prosecutors delay a charging decision, leaving Binance and its executives exposed to an unresolved criminal investigation.
Plea discussions give Binance a possible route to resolve the probe, but the scope of any resolution remains contested inside the DOJ.

Second-order effects

The DOJ must balance a negotiated resolution against an indictment; later deliberations explicitly weighed whether charges could trigger an exchange run similar to FTX's collapse-driven customer flight.
A prolonged federal probe keeps compliance and sanctions exposure central to Binance's operating position while regulators decide how aggressively to proceed.

Third-order effects

The later proposed multibillion-dollar DOJ resolution and subsequent compliance-monitor arrangement point to a durable enforcement model in which major crypto platforms face negotiated penalties and externally supervised controls rather than an immediate shutdown.
If that model persists, the ability to satisfy U.S. financial-crime compliance demands becomes a core condition of legitimacy for large exchanges.

The trend: Crypto enforcement is moving toward forcing major exchanges to trade operational autonomy for settlement, monitoring, and access to regulated markets.

Discussion

@binance @binance on x
Reuters has it wrong again. Now they're attacking our incredible law enforcement team. A team that we're incredibly proud of - they've made crypto more secure for all of us. Here's the full statement we sent the reporter and a blog about our remarkable law enforcement team.
@runews @runews on x
Binance token goes boom 🤯 https://t.me/... https://twitter.com/...
@zerohedge @zerohedge on x
US PROSECUTORS CONSIDER CHARGING BINANCE AND EXECUTIVES FOR POSSIBLE MONEY LAUNDERING, SANCTIONS VIOLATIONS - SOURCES DOJ OFFICIALS HAVE DISCUSSED POSSIBLE PLEA DEALS WITH BINANCE ATTORNEYS IN MONEY LAUNDERING CASE - SOURCES
@tier10k @tier10k on x
[DB] Doj Officials Have Discussed Possible Plea Deals With Binance Attorneys in Money Laundering Case - Sources: RTRS
@tier10k @tier10k on x
[DB] US Prosecutors Consider Charging Binance and Executives for Possible Money Laundering, Sanctions Violations - Sources: RTRS
@ben_mckenzie Ben McKenzie on x
Cc: ⁦US law enforcement https://www.forbes.com/...
@tomwilson1983 Tom Wilson on x
6. Binance's defense attorneys have held meetings in recent months with DOJ officials, the four people said. The discussions included potential plea deals, according to three of the sources.
@tomwilson1983 Tom Wilson on x
Latest @Reuters exclusive on @binance Splits between @TheJusticeDept prosecutors are delaying the conclusion of a long-running criminal investigation into the world's largest crypto exchange Binance, four people familiar with the matter said. https://www.reuters.com/...
@tomwilson1983 Tom Wilson on x
2. The investigation began in 2018 and is focused on Binance's compliance with U.S. anti-money laundering laws and sanctions, these people said. Some federal prosecutors involved in the case believe the evidence gathered justifies moving aggressively against the exchange...
@aaberwick Angus Berwick on x
NEW: We pieced together how the US Justice Dep investigation into Binance has developed and how the crypto giant has sought to keep it at bay. Some prosecutors now believe evidence justifies filing charges against executives including CZ, sources told us https://www.reuters.com/.…
@nikhileshde Nikhilesh De on x
So my biggest takeaways from today's @Reuters report: * Possible settlement talks between DOJ and Binance, which the exchange's denial doesn't discuss * Binance's blog post talks about the team it started building in 2021, but the article refers to alleged activity from 2018
@nbits60 @nbits60 on x
“Among Binance's arguments: A criminal prosecution would wreak havoc on a crypto market already in a prolonged downturn.” (Sad trombone.....) https://twitter.com/...
@icebergy_ @icebergy_ on x
The laundering/sanctions violation case for binance is years old
@stockmktnewz @stockmktnewz on x
“Reuters has it wrong again” - Binance https://twitter.com/...
@crypto_potato @crypto_potato on x
1/ On the Binance - US DOJ news that's running rampant, it's important to clarify a few things. 1. This is not a new investigation. It's running since 2018. 2. No decision to charge @binance or @cz_binance has been taken (according to the report) 👇 👇 https://twitter.com/...
@milesdeutscher Miles Deutscher on x
Isn't there someone else they should be going after instead.. Why don't they stop wasting their time on Binance and focus on the real criminal, SBF. https://twitter.com/...
@du09btc @du09btc on x
How to create FUD against #Binance 101. 👇 Take news from 2018, recycle it and turn it into Breaking News in 2022 as revenge for #FTX collapse. If you did not know, #CoinDesk is owned by Digital Currency Group or the ones behind Grayscale which is in trouble lately... https://twit…
@coingecko @coingecko on x
UPDATE: @Binance responds by saying the Reuters report is incorrect and that they “don't have any insight into the inner workings on the US Justice Department”. https://twitter.com/...
@wiseanalyze @wiseanalyze on x
Binance respond to new FUD. In CZ we trust 🙏 All those gov dogs are connected with SBF who is the real criminal and should go to jail. Instead they try to save him by digging under Binance https://twitter.com/...
@adamscochran Adam Cochran on x
“We don't have insights into the DoJ” is the weirdest possible statement to make when accused of a crime, other than maybe: “1) What” https://twitter.com/...
@silvermanjacob Jacob Silverman on x
“Some of the at least half dozen federal prosecutors involved in the case believe the evidence already gathered justifies moving aggressively against the exchange and filing criminal charges against individual executives including founder Changpeng Zhao” https://www.reuters.com/.…
@silvermanjacob Jacob Silverman on x
It would be a very big deal, to put it mildly, if Binance, CZ, and top execs were criminally charged. https://www.reuters.com/... https://twitter.com/...
@matthewstoller Matt Stoller on x
“Among Binance's arguments: A criminal prosecution would wreak havoc on a crypto market already in a prolonged downturn.” Don't threaten me with a good time! https://twitter.com/...
@tier10k @tier10k on x
Unfollowed by the binance folk, I'm just the messenger 😪 https://twitter.com/...
@johnreedstark John Reed Stark on x
Per Reuters: During 2022, Binance kept weak anti-money laundering controls, processed over $10B in payments for criminals and companies seeking to evade U.S. sanctions, and plotted to evade regulators in the United States and elsewhere. Not surprising. https://www.reuters.com/...
@advisercounsel Max Schatzow on x
As a lawyer, never put yourself in a position where you might be charged with crimes in connection with your legal advice. NGMI Binance legal. https://twitter.com/...
@wiseanalyze Zen on x
🔥 NEW FUD 🔥 US Prosecutors Look to Charge Binance and CZ for Possible Money Laundering Violations: Reuters The Department of Justice has also discussed possible plea deal with Binance's lawyers, the report added. https://www.coindesk.com/...
@wublockchain Wu Blockchain on x
The charges are unlicensed money transmission, money laundering conspiracy and criminal sanctions violations. No final decisions have been made, the DOJ could bring indictments against Binance and its executives, negotiate a settlement, or close the case without taking any action
@wublockchain Wu Blockchain on x
Reuters: Splits between U.S. Department of Justice prosecutors are delaying the conclusion of a long-running criminal investigation into the Binance. The investigation began in 2018 and is focused on Binance's compliance with U.S. anti-money laundering laws and sanctions.
@gainzy222 @gainzy222 on x
bruh lmfao all those tweets cz made shitting on sam after ftx nuked sam's about to have a field day, the 2 of them can share a cell
@carnage4life Dare Obasanjo on x
The biggest surprise in the crypto space this year is that FTX went down before Binance. https://twitter.com/...
@hsakatrades @hsakatrades on x
“Ultimately, the Justice Department could bring indictments against Binance and its executives, negotiate a settlement, or close the case without taking any action at all.” Reuters would make great paid group leaders. https://twitter.com/...
@smtuffy Sean Tuffy on x
Probably nothing https://twitter.com/...
@macrocrg @macrocrg on x
Let me get this straight US prosecutors consider charging Binance But SBF is still walking around a free man Clown world https://twitter.com/...
@raoulgmi Raoul Pal on x
I can't help but think that the crypto world will do what the FX world has not managed - to split into two trading blocks; Asia/ROW controlled by Binance and US probably controlled by Coinbase. Don't think this is likely a coincidence either...EU is still a swing factor for now. …
@officialtravlad @officialtravlad on x
So desperate to kick #Crypto whilst it is down. But in this case it causes damage to business, even if just the short term, surely improper spread of false information should be under defamation of @Binance @cz_binance https://twitter.com/...
@doombergt @doombergt on x
Zhao “instigated a recruitment spree last year that led to the hiring of officials from the Internal Revenue Service's Criminal Investigation division, the U.S. government agency that was investigating Binance.” Incredible corruption in the US https://www.reuters.com/...
@hsakatrades @hsakatrades on x
Binance going to get charged before the goblin lmfao https://twitter.com/...
@gainzy222 @gainzy222 on x
buidl ? more like laundre https://twitter.com/...
@grindingpoet @grindingpoet on x
SBF steals 10b$ and he's the poster boy. An unregulated foreign entity doesn't adhere to their political sanctioning and it's mayday. https://twitter.com/...
@kamikaz_eth @kamikaz_eth on x
CZ the new main character innit 10k BTC incoming? tbf this was the most inevitable shitshow in crypto Binance is a ticking time bomb of sketchy shit and the US govt is just dying to crush it so tardfi firms can capture more crypto market share for the next cycle https://twitter.c…
@cobie @cobie on x
@tier10k Guys it's Christmas can we do this in like a month instead
@hsakatrades @hsakatrades on x
https://twitter.com/... https://twitter.com/...
@tier10k @tier10k on x
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