- Prosecutors fear the charges could hurt users.
- But they are considering other punishment options, such as imposing fines, entering into deferred prosecution agreements or avoiding prosecution.
U.S. Justice Department officials are considering bringing fraud-related charges against cryptocurrency exchange Binance, Semafor reported, citing people familiar with the case.
Sources said federal prosecutors are worried that bringing charges against Binance could create a frenzy on the exchange similar to the one already seen on FTX. They fear it could lead to a loss of customer funds and cause panic in the cryptocurrency markets, people familiar with the situation said.
Prosecutors, however, are considering alternatives such as imposing fines, entering into deferral agreements or avoiding prosecution. Such an outcome would be a compromise, as the exchange would be held liable for the alleged criminal behavior, but users would be minimally affected, Semafor reported.
The BNB native token reacted negatively to the news, falling in value by about 2% in the last 24 hours since it was written and now trading at $241, according to Coinmarketcap:
BNB price chart. Source: Coinmarketcap.
Reminder, in late March, the CFTC sued Binance and CZ for regulatory violations. Also in early June, the Securities and Exchange Commission accused the exchange and its CEO of violating federal securities laws.
Securities and Exchange Commission, Inc.