Prosecution attorneys in the US Department of Justice remain split over moving forward with the criminal prosecution of Binance.
The conflict between Binance and the US Department of Justice intensifies after delays in concluding a long-running investigation. The Department opened a criminal investigation into the world’s largest cryptocurrency exchange.
The investigation commenced in 2018. The criminal investigation focused on Binance’s noncompliance with the anti-money laundering regulations.
A Justice Department in Dilemma
The stakes remain high for the deeply troubled crypto sector. If the investigation goes against Binance and Zhao, it could loosen Binance’s grip on the industry. After the collapse of FTX, Binance’s dominance remains at risk.
Some federal prosecutors believe that the evidence gathered justifies aggressive attacks against Binance. Some of the criminal charges also target individual executives, mainly Changpeng Zhao.
Other advocates nevertheless argued that the department needs time to review more evidence.
The Department of Justice initiated an inquiry into the matter. The inquiry involved prosecutors at three Justice Department offices.
The Money Laundering and Asset Recovery Section (MLARS) and Western District Attorney Office in Seattle took place in the inquiry. The National Cryptocurrency Enforcement Team was also involved in the process.
Regulations specify that money laundering charges against a financial institution must be approved. The Chief must approve the charges of the MLARS. Leaders from both offices and the Department will sign off on any action against Binance.
Charges against Binance
Binance’s defence attorneys at US law firm Gibson Dunn held meetings in recent months with officials from the DOJ. Binance insists that a criminal prosecution would wreak havoc in the crypto market.
The crypto market continues to spiral down a prolonged downturn. Binance faces charges of unlicensed money transmission, money laundering and criminal sanction violations.
However, details concerning the case remain sealed.
