Transparency and proof of reserves: Binance threatened with prosecution?

A lengthy investigation by the US justice system threatens Binance and its executives with money laundering. The crypto exchange is reportedly delaying the proceedings, citing a risk to an already hard-hit market.

Since the fall of FTX, Binance has strengthened its dominance over the crypto industry. The exchange is also trying to set the tempo in terms of transparency practices, though without totally convincing.

According to Reuters, they have been investigating money laundering and sanctions violations since 2018. The accumulated evidence would thus allow to implicate the company and its executives, including Changpeng Zhao.

However, the authorities are reluctant to start this new phase of the procedure. There are several reasons for this. Some would like to gather more evidence. Others are sensitive to the arguments raised by Binance’s lawyers.

During meetings with the Department of Justice in recent months, Binance’s lawyers would warn the department against the consequences of such a public procedure on the crypto market.

The exchange would thus tend to negotiate an agreement with the American justice in order to avoid too much media coverage. Binance is thus preserving its image, which it has been trying to restore for nearly a year and to affirm with the crisis triggered by the collapse of FTX.