The U.S. Department of Justice (DoJ) is holding a press conference later today that will announce its settlement with Binance, according to Bloomberg. It followed reports that the DoJ was looking for more than $4billion to resolve a multi-year investigation.
Binance ($BNB), the largest cryptocurrency exchange, is the subject of a DoJ investigation, where it was alleged that investors from sanctioned countries, including Russia and Iran, were able to use the platform.
The exchange was also under investigation for money laundering and bank fraud.
This proposed settlement was reported to allow the cryptocurrency exchange to continue its operations. However, Binance will give the DoJ access to its database.
Binance’s founder Changpeng ‘CZ’ Zhao could still face criminal charges, even after the investigation is settled. But the specific structure and timing of this settlement is currently unclear.
Binance has previously asked for a deferred prosecution agreement, which would minimise its exposure, according to Bloomberg. If agreed, the US would not face a prosecution as long as the company meets predetermined conditions. This is usually a significant penalty and an apology.
Investors appeared to have welcomed the potential end of this long-running investigation into the cryptocurrency exchange. BNB, the native cryptocurrency, has climbed by 5% over the past 24-hours and 6% in the previous seven days.
This comes amid an expectation from investors that the demanded $4bn settlement would be a manageable expense for Binance.
The press conference, where this decision is expected to be announced, will take place at 3pm ET time on 21 November.
This conference will have “significant cryptocurrency enforcement actions”, according to the DOJ. Attending it will be Attorney General Merrick Garland, Treasury Secretary Janet Yellen, Deputy Attorney General Lisa Monaco and CFTC Chairman Rostin Behnam.
Other reports have speculated that the DoJ could discuss its recent seizure of $9m worth of Tether, which was announced earlier today. The department captured the funds from a “romance scams and cryptocurrency confidence scam” that exploited victims.
Tether said it collaborated with the DoJ, US Secret Service, and OKX exchange. As a result, it froze $225m in $USDT.