The U.S. Department of Justice (DOJ) chief prosecutors are split on whether to charge Binance and its managers with potential money laundering and sanctions violations as part of a protracted criminal investigation into the largest cryptocurrency exchange in the world.
According to four anonymous officials who spoke to Reuters, at least six federal prosecutors think the evidence accumulated thus far supports the bringing of criminal charges against Binance and its principal leaders, including CEO Changpeng Zhao.
The examination of Binance's compliance with American anti-money laundering legislation and sanctions started in 2018. Although no formal accusations have been filed, the exchange is being investigated for violating criminal sanctions, conspiring to launder money, and making unauthorized money transactions.
According to the unnamed individuals, Binance's defense lawyers from the American law firm Gibson Dunn met with DOJ representatives' numerous times in recent months, with Binance claiming that a criminal investigation would worsen the already-declining state of the cryptocurrency industry.
However, Binance's verified Twitter account, stated "Reuters had it wrong again," adding that "we don't have any insider information on the inner workings of [DOJ]" and that "our financial crimes team of roughly 300 investigations is working on the front lines to protect users from illicit actors," "we don't have any insider information on the financial workings of [DOJ]."
The possibility of being charged with a crime could damage Binance's reputation as the biggest cryptocurrency exchange in the world, which was already enhanced by the demise of FTX.
While lacking a corporate headquarters, Binance has tried to create a unique and separate Binance.US office. The former deputy general counsel of the Treasury Department and former IRS employees working in the department's Criminal Investigation division were recently hired by Binance.
