Binance and CZ will be charged with money laundering

US prosecutors can file legal charges against cryptocurrency exchange Binance and its CEO Changpeng Zhao (CZ) for money laundering. According to the news Reuters citing 4 unnamed sources, the Ministry of Justice is also discussing a possible affidavit with Binance's lawyers. In US law, the offer of reduced sentences or concessions to the accused in exchange for pleading guilty is called a plea deal.

Binance and CZ will be charged with money laundering

Speaking to the news agency, 4 people said that the investigation into the issue actually started in 2018. Accordingly, it is being investigated whether Binance complies with the US anti-money laundering laws and sanctions.

Some federal prosecutors involved in the case believe that the evidence gathered so far in the investigation is sufficient to bring criminal charges against the company and some of its top executives, including CZ. However, sources speaking to the news agency claimed that some prosecutors did not agree with this view. Accordingly, the prosecutors in question argue that time is needed to find more evidence.

Defense attorneys at law firm Gibson Dunn, representing Binance, reportedly held a series of meetings with Justice Department officials recently. Arguments presented by lawyers included that "prosecution could devastate the crypto market, which is already in decline."

It was claimed that possible acknowledgment agreements were also brought to the agenda at the said meetings. Ministry of Justice officials declined to comment on the matter. Binance representatives responded to Reuters' request for comment: We do not have any insight into the inner workings of the Department of Justice, and it would be inappropriate for us to comment if we did.