Binance Faces Possible Fraud Charges from The US Department of Justice

The U.S. Department of Justice (DOJ) is thinking about charging Binance, the world's biggest crypto exchange, with fraud, as reported by news website Semafor. However, the DOJ wants to ensure that any actions taken won't harm Binance users or cause problems in the broader crypto market.

DOJ officials are worried that if they charge Binance, it could lead to a large number of people withdrawing their money from the exchange. This could harm Binance's customers and cause panic in the crypto market, similar to what happened when the crypto exchange FTX fell apart in 2022.

To deal with alleged illegal activities at Binance, U.S. prosecutors are considering other options. These include fines and agreements that would require Binance to meet certain DOJ conditions to avoid charges.

The Semafor report did not provide any details about the possible fraud charges against Binance. Neither Binance nor the DOJ have made any comments about the report.

This news comes at a time when Binance is facing regulatory challenges all over the world. In the U.S., the crypto exchange has been charged by the Securities and Exchange Commission and the Commodity Futures Trading Commission for supposed rule violations. Binance denies these charges.

In Europe, Binance is under investigation in France for money laundering, and it had to leave the Netherlands in June 2023 due to licensing issues. Binance also reportedly withdrew a crypto license application in Germany in late July.

Binance is also said to have helped its Chinese users get around the country's ban on crypto transactions. Chinese users reportedly traded $90 billion worth of crypto assets in May 2023, making China the largest market for Binance.

Following the release of Semafor's report, Binance's BNB token dropped 2.50% to $239.95, according to data from Coinpaprika.