US media Semafor reveals: Department of Justice considers suing Binance for fraud, but concerns about a repeat of the FTX run on the bank.

According to a report by Semafor, a US media outlet, exclusive sources claim that US Department of Justice officials are considering bringing fraud charges against the cryptocurrency exchange Binance, but they are concerned about the potential cost to consumers.

Considering Lawsuit Against Binance for Fraud, But Fear of Triggering a Bank Run

Federal prosecutors are concerned that filing a lawsuit against Binance may trigger a bank run similar to what bankrupt platform FTX experienced, leading to user fund losses and causing panic in the cryptocurrency market.

According to reports, prosecutors are exploring other options such as fines, delaying litigation, or reaching a settlement. Balancing holding Binance accountable for alleged criminal activities while minimizing damage to consumers.

Semafor believes this incident underscores the complexity and pace of development of cryptocurrency law enforcement and regulation in the United States, with cryptocurrency businesses operating in a gray area without the same protections enjoyed by consumers in traditional banking systems.

Binance's Changpeng Zhao: 4

In response to this report with almost no verifiable content, Binance founder Changpeng Zhao simply stated: 4. Ignoring panic, fake news, or attacks.

4

— CZ 🔶 Binance (@cz_binance) August 2, 2023

Fear of Lawsuits from Regulators? SEC and CFTC Have Already Filed

Whether it's for charges of unregistered securities, unregistered services, investor fraud, etc., the SEC or CFTC have already filed lawsuits, and the cases are currently under review. In fact, these severe accusations have not triggered catastrophic bank runs. Therefore, the sudden report from Semafor, with only "considering fraud lawsuits" and "concerns about causing bank runs," seems as if the market has already weathered such events. Binance's platform token BNB also recovered quickly after a brief dip.