Attorney Drops Hint Of Binance’s Incoming US DOJ Prosecution

Ever since the US Securities and Exchange Commission (SEC) sued the world’s top crypto exchange Binance in June 2023 over securities laws violation, it has been speculated that the United States Department of Justice (DOJ) was set to indict the company. Meanwhile, the XRP lawsuit Summary Judgment was delivered, effectively calling the retail sale of XRP tokens not securities. This could have an impact on the SEC’s allegations over securities violation by the exchange.

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US DOJ Probe On Binance Is Coming?

Based on recent developments, John Deaton, the attorney representing the XRP token holders in the Ripple Vs SEC lawsuit, predicts that a DOJ indictment is on the cards. Earlier, CoinGape reported that payments company Mastercard will discontinue its crypto card payment partnership with Binance. Similarly, Visa too had announced it was dropping the crypto card partnership with the exchange. It was this development that triggered a suspicion for Deaton, that something ‘related to a criminal prosecution’ is on the cards.

“I have to admit that this distancing by Mastercard and Visa make me suspect that something might be on the horizon related to a criminal prosecution. There’s been speculation and predictions that a DOJ indictment was likely to follow the CFTC/SEC filings.”

What Will Happen If DOJ Initiates Prosecution

Earlier, reports said that the DOJ officials were fearing a crypto market crash or a widespread selloff on the exchange if they initiate proceedings against the company. Considering the massive reach the exchange has in the market and the large volumes of trades it controls, such a probe would create a temporary bear run situation. However, the traders and investors have in the recent times showed resilience against crypto enforcement actions by the US regulators, in what could be a sign of confidence in recovery.

Also Read: “DOJ Needs to Sue Themselves”- Elon Musk on Charges Against SpaceX

Anvesh reports major crypto updates around regulation, lawsuits and trading trends. Published around 1,000 articles and counting on crypto and web 3.0. He is currently based in Hyderabad, India. Reach out to him at [email protected] or twitter.com/BitcoinReddy

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.