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The United States Department of Justice is reportedly seeking a record-breaking penalty of $4 billion from Binance Holdings, the world’s largest cryptocurrency exchange. The investigation into Binance involves allegations of bank fraud, money laundering, and sanction violations. The resolution being discussed would require Binance to pay the penalty and potentially result in criminal charges against its founder, Changpeng Zhao. Binance has proposed a deferred prosecution agreement, which would involve meeting specific conditions and establishing a monitoring process. The outcome of this investigation could have a significant impact on investor sentiment towards the crypto industry, which is already facing regulatory scrutiny and high-profile collapses. Binance’s US unit has also faced legal challenges and job cuts. The resolution with Binance could set a precedent for compliance and accountability within the crypto space.