Is Binance the next FTX? The people at the DOJ are concerned that it is

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TL;DR

  • The US Justice Department wants to sue Binance for fraud, but they are concerned that a criminal charge will lead to a bank run, harming consumers.

  • That’s why the DOJ is rumored to be exploring other options, such as fines or non-prosecution agreements.

Full story

Picture this:

You’re a kid again. You’re 10 hours into a family road trip and your dad’s patience has reached an absolute breaking point.

Your older brother grabs the Gameboy from you, punches you on the arm and says ‘what are you going to do about it?’ Look.

You look up and see that single vein in your father’s forehead staring back at you in the rearview mirror.

His most recent threat echoes in your mind: “I swear to God, I will flip this car, cancel this vacation, and enroll you all in summer school.”

You decide to shut up screaming (for the greater good).

Right now, the folks at the US Department of Justice (DOJ) are in a similar situation.

They want to sue Binance for fraud, but they fear that a criminal charge will lead to a bank run (essentially pushing Binance down the same path as FTX), harming consumers.

That’s why the DOJ is rumored to be exploring other options, such as fines or non-prosecution agreements.

It’s all in limbo now, but for those of you who have money on Binance, it might be worth moving your crypto to a wallet for safekeeping.

(Prevention is better than cure).

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