On August 2, news broke on various media platforms that the US Department of Justice (DOJ) was considering filing fraud charges against Binance, the largest cryptocurrency exchange in the world by trading volume.
Interestingly, the chief executive officer of the exchange, CZ via tweet has warned the cryptocurrency community with his warning of “4”, which denotes attempts to generate FUD among the community.
Earlier on 2 August, reports surfaced that the Department was considering filing fraud charges against the cryptocurrency exchange.
The most recent sources also said that if they accuse the exchange, federal investigators fear that Binance could have a run similar to that of FTX, which would be disastrous for the investors.
As a result of the FTX collapse, millions of dollars were lost by thousands of users in the final quarter of 2022, which had a severe impact on the cryptocurrency industry.
Due to the enormous volume of trading that occurs on Binance every day, a Department of Justice probe would undoubtedly result in a collapse of the cryptocurrency market.
In spite of a two-year ban, the WSJ earlier on 2nd August said that Binance customers from China traded crypto assets worth an amazing $90 billion in just one month.
According to well-known expert CrediBULL Crypto, the reports were simply a repetition of the news from June 2023.
The DOJ is allegedly looking into alternative measures to prevent a run on the exchange. According to the statement, prosecutors are considering imposing “fine and postponed or non-prosecution agreements” against the exchange.
The U.S. SEC has already filed charges against Binance and Coinbase, the two biggest cryptocurrency exchanges operating in the country, for suspected securities law violations.
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