Crypto exchange Binance will settle a long-running investigation with the U.S. Department of Justice in a deal to be announced later Tuesday, an individual familiar with the situation told CoinDesk. As part of this deal, founder Changpeng “CZ” Zhao may step down from his role as CEO of the world’s largest crypto trading platform, Forbes reported.
The DOJ announced it would hold a press conference on Tuesday to announce “significant cryptocurrency enforcement actions,” with Attorney General Merrick Garland, Treasury Secretary Janet Yellen, Deputy Attorney General Lisa Monaco and CFTC Chairman Rostin Behnam. The individual said this would be tied to the DOJ’s long-running investigation into Binance.
Bloomberg, which first reported what Tuesday’s press conference would detail, reported on Monday that Binance could settle the DOJ’s charges with a $4 billion fine and a deferred prosecution agreement. Reuters later confirmed the announcement would detail the DOJ’s deal with Binance.
It’s unclear whether Binance founder Zhao will face additional or separate charges alongside the settlement. A second individual who is not directly involved in the matter said charges tied to a specific person are likely. A DOJ spokesperson declined to comment.
Forbes reported Tuesday that Zhao is “in discussions” to step down from his exchange.
The DOJ has investigated over allegations it allowed people from sanctioned countries to operate on its exchange, alongside other issues. It was sued by the CFTC earlier this year.
The price of bitcoin (BTC) and Binance’s native token BNB rose after the report of the settlement.
UPDATE (Nov. 21, 2023, 16:45 UTC): Adds additional detail, including confirmation about what Tuesday’s press conference will discuss.
UPDATE (Nov. 21, 2023, 16:52 UTC): Adds Zhao news.
