Binance Cryptocurrency rises due to rumors of end of American investigation

a Binance Coin (BNB) it rose by more than 10% on Monday afternoon (20) after Bloomberg reported that the US Department of Justice, the DoJ, was ready to offer an agreement to end an investigation against the broker.

The settlement amount would be more than 4 billion dollars (R$19.4 billion). Yet the amount did not scare investors, who ensured that BNB gained more than $3 billion in market value with a 10% increase.

Being the largest cryptocurrency broker on the market, the news also had a positive impact on Bitcoin, which reached $37,770 after the rise of Binance Coin.

Changpeng Zhao, founder of Binance, could be indicted by the US Department of Justice

Despite the market’s excitement over the possible deal between the Justice Department and Binance, the Bloomberg article notes that Changpeng Zhao could face criminal charges in the US. DOJ investigations are alleged to involve money laundering, bank fraud, sanctions violations and other crimes.

The founder and CEO of Binance, born in China but a self-described Canadian, currently lives in Dubai, United Arab Emirates. According to Forbes, his fortune is estimated at $10.2 billion, making him the richest person in the crypto sector.

Compared to Binance’s estimated $4 billion fine, Volkswagen paid a similar amount ($4.3 billion) in 2017 to settle a lawsuit over an emissions fraud scheme on its diesel engines. In 2015, BP (British Petroleum) was ordered to pay $20.8 billion for an oil spill in the Gulf of Mexico.

In addition to the billions in fines, Changpeng Zhao could also be prosecuted by the US. Since the CFTC, and later SEC, lawsuit, Binance has already lost several executives, implemented benefit cuts and also massive layoffs, all while blaming pressure from regulators.

Despite the crisis, Binance remains the world’s largest cryptocurrency broker in both the spot and derivatives markets. At $256, Binance Coin (BNB) remains in fourth place among the world’s largest cryptocurrencies, behind only Bitcoin (BTC), Ethereum (ETH) and the stablecoin Tether (USDT).

Zhao and Binance did not respond to attempts to contact Bloomberg, which first reported the possible deal citing an anonymous source. Silence also reigns on social media. The Ministry of Justice has also not commented on the revelations.

Source: Live Coins