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Binance Could Face U.S. Fraud Charges, but Prosecutors Worry About Risk of Bank Run: Semafor
They are weighing alternatives such as “fines and deferred or non-prosecution agreements,” sources told the publication.
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The U.S. Department of Justice (DOJ) is mulling whether to charge crypto exchange Binance with fraud, Semafor reported, citing people familiar with the matter.
But federal prosecutors fear an indictment could trigger a run on deposits at Binance, causing the exchange to crumble like FTX did last fall. They are weighing alternatives such as “fines and deferred or non-prosecution agreements,” sources told the publication.
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The price of bitcoin (BTC) and Binance’s BNB token fell following the report.
Edited by Nick Baker.
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