Part of a deal apparently includes the Department of Justice making a deal with Zhao who is living in the United Arab Emirates which has no extradition treaty with the USA. He has agreed to pay a $50 million fine. For Binance is $4 billion to resolve the Binance case a reasonable deal? https://youtu.be/EH9O73-OFm4

1. By: www.ProfitableInvestingTips.com

2. It is possible that some regulatory issues with
Binance and the US Justice Department could
be resolved without a trial. The same may be
true for Binance CEO Changpeng Zhao. What
is in the works is a deferred prosecution
agreement. The Justice Department would file
charges but not proceed.

3. Binance would abide by an agreed upon set of
rules and be able to continue operations and
not collapse. Part of a deal apparently includes
the Department of Justice making a deal with
Zhao who is living in the United Arab Emirates
which has no extradition treaty with the USA.
He has agreed to pay a $50 million fine. For
Binance is $4 billion to resolve the Binance case
a reasonable deal?

4. What Is the Justice Department Binance Case?

5. The basics of the Justice Department Case against
Binance are that they helped foreign actors
evade sanctions imposed by the US.
Specifically this has to do with terrorist
financing by Iran, terrorist activities by Hamas,
and the Russian Republic after it came under
sanction for invading Ukraine.

6. Basically, a crypto exchange is required by the
USA to know its customers. The point is to
avoid helping in money laundering, hiding
criminal profits, and financing terrorist
operations. The Justice Department blames
both the Binance company and its founder,
Changpeng Zhao, for carrying out criminal
activities.

7. Lawsuit Effectively Crippled Binance.US

8. The criminal case against Binance hit Binance.US
the hardest. However, as this drags on there is
the risk of Binance collapsing similar to how
FTX did a year ago. It appears that part of what
is going on is an attempt to avoid more chaos
in the crypto market. Should a deal be reached,
Binance would pay a fine and have its
operations closely monitored for an indefinite
period of time.

9. The seriousness of this case can be seen in the fact
that the money laundering division of the
Department of Justice as well as the national
security division are involved. Meanwhile,
Binance.US business is virtually nonexistent
and the company has laid off a substantial
portion of its employees.

10. Avoiding an FTX Repeat

11. When FTX was going under, Bankman-Fried
asked Zhao for a bailout. Apparently Zhao saw
how bad the situation was and refused. $8
billion was lost in the FTX mess. How much
would be lost if Binance went under is
uncertain. The fact that the Binance story has
played out over more than a year has given
their customers a heads up.

12. Thus, Binance has to a degree resembled a
sinking ship over the last year. A big
difference in regard to Zhao versus Bankman-
Fried is that Zhao went to a country with no
extradition to the USA. Bankman-Fried holed
up in the Bahamas in one of his villas from
which he could be extradited.

14. CFTC Lawsuit on Top of Justice Department
Case

15. In addition to the troubles that Binance has with
the Justice Department, it is also being sued by
the Commodity Futures Exchange Commission
and the Securities and Exchange Commission.
The issue is that Binance broke derivative
trading rules according to CFTC and SEC.

16. This part is what virtually all of crypto is going
through. Regulators want trading venues in
crypto to follow rules similar to what stock
exchanges, stock brokers, banks, mutual funds,
insurance companies and others already follow
as they handle customer money.

17. Why Is the Justice Department Making a
Settlement Offer?

18. A cynic might note that if Binance continues to go
downhill, there will be no money left. Thus,
accepting a fine now in return for promised
compliance could generate $4 billion to pay for
the prosecution of this case and more. A less
cynical opinion is that the goal of the Justice
Department as well as the CFTC and SEC is not
to destroy Binance or crypto for that matter.

19. The goal is to get folks in crypto and Binance in
particular to play by the same rules that folks
like the New York Stock Exchange have played
by for more than a century. Because Mr. Zhao
is safely ensconced in the United Arab
Emirates, he has had more leverage than
Bankman-Fried as is getting off with a $50
million fine.

20. For more insights and useful information about
investments and investing, visit
www.ProfitableInvestingTips.com.