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Binance prepared for penalties to end US investigations, details inside

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Binance prepared for penalties to end US investigations, details inside

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  • Leading crypto exchange Binance is preparing to face penalties to resolve investigations in the U.S.
  • Sources believe that resolving issues with U.S. regulators would be beneficial to the future of the exchange.

Leading crypto exchange Binance is preparing to face penalties in order to resolve outstanding regulatory and law enforcement investigations in the United States.

On 15 February, the Washington Post reported that Binance has been working with regulators to resolve previous compliance issues, citing the firm’s chief strategy officer, Patrick Hillmann. He also stated that, most likely, the outcome of ongoing investigations will be penalties. However, that would be up to the regulators.

Hillmann added that Binance felt confident about the direction of the discussions. Even then, he couldn’t provide a figure for the fines or a timeframe for resolution. He affirmed that the lack of clarity for crypto in the US made it a confusing time for the exchange.

Over the years, several regulatory bodies in the U.S. have investigated Binance.

In 2018, the Department of Justice (DoJ) launched an investigation into potential violations of anti-money-laundering laws by Binance.

In March 2021, the Commodity Futures Trading Commission (CFTC) also investigated whether the company offered crypto derivatives to US customers without first registering with the body.

The Securities and Exchange Commission (SEC) also launched an investigation into Binance’s US division in February last year, focusing on trading firms linked to CEO Changpeng Zhao.

Another flash point in the “war on crypto”?

Recently, the SEC escalated what industry refers to as a “war on crypto.” It appears to target certain staking services and stablecoins that the regulatory body has deemed to violate securities laws.

Notably, Paxos was barred from issuing more of the Binance stablecoin, BUSD, by the New York Department of Financial Services (NYDFS).

Following SEC’s enforcement action, U.S. crypto exchange Kraken was fined $30 million and ordered to halt its staking services last week.

In response to recent enforcement activity, the Binance executive stated that it would have a significant and long-term impact in the United States. He did, however, conclude that resolving issues with US regulators would be beneficial to the future of Binance.


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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