US Department of Justice considering filing fraud charges against Binance

Washington: The United States (US) Department of Justice officials are the possibility of filing fraud charges against Binance, a cryptocurrency exchange, Semafor has reported. However, according to the people familiar with the matter, the department has concerns about its cost to consumers.

Federal prosecutors are expressing apprehension that an indictment against Binance could lead to a situation akin to what happened with the now-bankrupt platform FTX, resulting in a run on the exchange. This could potentially cause consumers to suffer financial losses and trigger a state of panic in the cryptocurrency markets, according to sources familiar with the matter.

As per the details, the prosecutors are also exploring alternative options, which include potential fines and deferred or non-prosecution agreements. This approach could serve as a middle ground, as it holds Binance accountable for the alleged criminal conduct while minimizing the potential harm to consumers.

Binance and its founder, Changpeng Zhao, are currently dealing with charges from both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The SEC’s allegations revolve around accusations of operating an unregistered exchange in the United States and knowingly permitting U.S. citizens to engage in Binance’s offshore exchange.