Binance, regulators near multibillion-dollar criminal settlement

According to people familiar, the settlement is between $4 to $5 billion

article-image

Co-founder and CEO of Binance, Changpeng Zhao | Web Summit (CC BY 2.0), modified by Blockworks

share

Crypto exchange Binance is in talks with US regulators to settle criminal charges and related investigations, according to people familiar with the matter. 

The US Department of Justice could collect between $4 and $5 billion from the settlement agreement, according to sources familiar. The exchange, which currently faces a civil suit in the US from the US Securities and Exchange Commission, has been in talks with the DOJ for years, the report added. 

The SEC’s suit alleges that the crypto exchange offered unregistered securities and commingled customer funds. 

The proposed deal between DOJ and Binance would continue to let the exchange operate, bypassing a possible collapse and ramifications, while also giving law enforcement access to the exchange’s expansive database. People familiar with the matter said that DOJ officials and other investigators are interested in leveraging the exchange to better monitor illicit financial activities. 

Binance competitor FTX collapsed last November

The settlement is reportedly being led by the DOJ’s money laundering and asset recovery team. 

Binance has been under investigation by the DOJ for years, with lawmakers urging the DOJ to make up its mind on any possible charges back in October. 

Additionally, Binance faces DOJ scrutiny for alleged sanctions evasions. According to reports, the company aided the evasion of Russian and Iranian sanctions. It’s also been accused of helping Hamas, though it worked with Israeli authorities to freeze Hamas-linked crypto accounts back in October.

The crypto exchange also faces a lawsuit from the Securities and Exchange Commission, with the regulator alleging that it offered unregistered securities and commingled customer funds.

Representatives from Binance and the DOJ did not immediately respond to requests for comment.

The news sent the price of Binance’s token (BNB) soaring, pushing the digital asset’s value up nearly 7% as of press time, according to TradingView data.

Updated Nov. 20, 2023 at 1:17 pm ET: Clarified potential settlement value and allegations from the SEC’s lawsuit.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research

article-image

The stablecoin issuer now plans to offer 32 million Class A common stock shares at a price of up to $28 each

article-image

Let’s go whale watching, Bitcoin style: Investigating the mysterious “12ib7” wallet now worth $3.2 billion

article-image

Bitget’s L2 is undergoing a leadership change and will be helmed by Colin Goltra, formerly the blockchain’s chief growth officer

article-image

The funding was spread out across 61 rounds, a slight dip in both number of rounds and total funding in comparison to other months

article-image

Why is it controversial to say things are better than they used to be?

article-image

Wallchain could make influencer ROI more measurable for Solana businesses