The Division of Justice’s (DOJ) concern over the potential repercussions of submitting fees against Binance shocks cryptocurrency analyst Autism Capital. The DOJ is concerned that such a request may spark a run on the market and hinder many people’s efforts to seek justice.
Another technical analyst and crypto expert, DonAlt, provided a more significant viewpoint, though. “A crypto firm too large to fail,” he tweeted. He also cited a message from another Twitter user about the most recent Binance issue.
According to reports, the American Division of Justice (DOJ) is evaluating whether to accuse cryptocurrency exchange Binance of fraud. However, officers hesitate as they consider the possible costs to consumers in the event of an indictment.
According to a Semafor article dated August 2 and information from sources familiar with the situation, the DOJ is walking carefully to avoid inciting a run on the market similar to what happened with FTX in November 2022. Authorities are looking into the possibility of fining Binance or entering into non-prosecution agreements instead of filing charges in order to lessen the possible harm to consumers.
The cryptocurrency industry has previously faced legal issues in the past; reports suggested that it was being investigated for allegedly breaking U.S. sanctions on Russia. Additionally, Binance was sued by the U.S. Securities and Exchange Commission (SEC) in June for allegedly participating in the provision of unregistered securities and acting unlawfully.
It’s unclear what it would mean to file legal charges against Binance or CZ in the US bitcoin market. It is noteworthy that some prominent figures in the industry, like former FTX CEO Sam Bankman-Fried and former Celsius Community CEO Alex Mashinsky, have previously been charged with fraud for allegedly illegal conduct at their respective companies.