US
prosecutors are mulling over whether to initiate criminal charges against
Binance, thereby turning the heat on 13 civil charges filed by the securities
watchdog against the top crypto exchange earlier in June, Semafor reported today
(Wednesday), citing insider sources. However, the Department of Justice (DOJ)
is worried that such action could lead to a bank run, throwing the exchange
into a position similar to that of the now-bankrupt crypto exchange, FTX.
According
to the report, the DoJ is contemplating opting for other measures such as fines
and deferred or non-prosecution agreements (NPAs). An NPA means that the federal prosecutor, despite believing that a crime has been committed, will delay prosecution in exchange for the crypto firm’s compliance with certain conditions.
These
conditions typically range from payment of fines and the institution of corporate reform to full cooperation with a probe. In such cases, the charges are dismissed if the
defendant complies with the conditions.
US
prosecutors are mulling over whether to initiate criminal charges against
Binance, thereby turning the heat on 13 civil charges filed by the securities
watchdog against the top crypto exchange earlier in June, Semafor reported today
(Wednesday), citing insider sources. However, the Department of Justice (DOJ)
is worried that such action could lead to a bank run, throwing the exchange
into a position similar to that of the now-bankrupt crypto exchange, FTX.
According
to the report, the DoJ is contemplating opting for other measures such as fines
and deferred or non-prosecution agreements (NPAs). An NPA means that the federal prosecutor, despite believing that a crime has been committed, will delay prosecution in exchange for the crypto firm’s compliance with certain conditions.
These
conditions typically range from payment of fines and the institution of corporate reform to full cooperation with a probe. In such cases, the charges are dismissed if the
defendant complies with the conditions.