Claim $500FUD Alert: Reports Of US DOJ Fraud Charges On Binance Resurface
Crypto News: Reports of the US Department of Justice’s consideration of fraud charges against world’s top crypto exchange by trading volume Binance resurfaced again on Wednesday. Interestingly, the exchange’s chief executive officer CZ had alerted the crypto market ecosystem with his warning of “4” which indicates attempts to spread FUD in the community. Earlier on Wednesday, reports circulated that the Department was considering fraud charges against the crypto exchange, however, the charges are similar to the CoinGape report on June 12, 2023.
Also Read: Biden Administration Under Pressure To Implement Crypto Rules: WSJ
The latest reports also suggested that federal prosecutors fear an FTX-like run of Binance if they indict the exchange, which would in turn be a disaster for the investors. The FTX collapse in the last quarter of 2022 had a devastating effect on the crypto ecosystem as thousands of users lost millions of dollars in funds.
US DOJ Charges On Binance
A Department of Justice investigation on Binance would surely cause a crypto market crash, considering the massive volumes of trading the exchange sees on a daily basis. Earlier on Wednesday, The Wall Street Journal reported that Binance users from China traded crypto assets worth an astounding $90 billion in just one month, despite a ban in place since two years. Popular analyst CrediBULL Crypto confirmed that the reports were nothing but a repeat of the June 2023 news.
On the other side, the DOJ is reportedly exploring alternate options to avoid a run on the exchange. The prosecutors are looking at potentially imposing “fines and deferred or non-prosecution agreements” against the exchange, it said. Binance, along with Coinbase, the largest crypto exchange based out of the United States, already face lawsuits from the U.S. Securities and Exchange Commission (SEC) over alleged violation of securities laws.
Also Read: Robert Kiyosaki Warns of “Crash Landing” as US Credit Rating Plummets
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