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 a
prosecutor will halt prosecution in cases where it believes a crime has been committed in exchange
for the
defendant’s compliance with certain conditions.
These
conditions typically include paying fines, undergoing corporate reforms, and
fully cooperating 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 a
prosecutor will halt prosecution in cases where it believes a crime has been committed in exchange
for the
defendant’s compliance with certain conditions.
These
conditions typically include paying fines, undergoing corporate reforms, and
fully cooperating with a probe. In such cases, the charges are dismissed if the
defendant complies with the conditions.
