- Binance has recently moved $3.9 billion USDT to its hot wallet, marking the eighth largest Tether transaction on Tron.
- The US DoJ is seeking over $4 billion from Binance to end its investigation, according to a Bloomberg report.
- The SEC filed a lawsuit against Kraken on Monday, signaling that the US regulator continues its crackdown on crypto exchanges.
Binance is currently facing one of the largest investigations that the US Department of Justice has ever conducted into a cryptocurrency firm, according to a Bloomberg report. While negotiations between the two parties continue, a Bloomberg report claims that the US Department of Justice (DoJ) seeks more than $4 billion from the exchange to end its years-long investigation.
The US DoJ is probing Binance’s alleged involvement in money laundering, bank fraud, and sanctions violations among other charges.
In this context, twelve days ago Binance moved $3.9 billion USDT on Tron, from its cold wallet to a hot wallet, raising alarm among crypto market participants. This transaction is the eighth largest one to occur on the Tron blockchain. It is likely that the fund transfer is a coincidence, but the transaction has sparked speculation among market participants as it is similar to the US Justice Department’s alleged demand to settle the case.
Also read: XRP price could rally 10% higher with institutional interest in Ripple funds
US DoJ seeks more than $4 billion from Binance: Bloomberg
According to a November 20 Bloomberg report, Binance faces a $4 billion demand from the US DoJ. The Justice Department is seeking these funds to end its investigation into the exchange platform. The report states that a resolution is expected as early as the end of the month, and failure to settle could result in Binance founder and CEO Changpeng Zhao (CZ) facing criminal charges in the US.
In March, the Commodity Futures Trading Commission (CFTC) alleged that Binance and CZ routinely violated US derivatives rules. In June, the Securities and Exchange Commission (SEC) had filed a lawsuit accusing Binance and Changpeng Zhao for mishandling customer funds, misleading investors and regulators and violating securities laws.
The Justice department’s investigation is led by money laundering and asset recovery, national security divisions and the Seattle US Attorney’s office. If Binance settles with the Justice Department, paying more than $4 billion in fines, it would mark one of the largest penalties in a criminal crypto case.
A settlement would allow Binance to continue operations, rather than trigger a collapse that would have a ripple effect on the crypto ecosystem and its users. Binance has the option of a deferred-prosecution-agreement, which would open the exchange to criminal charges and the exchange would pay a substantial penalty and produce a statement outlining its wrong actions.
Binance has also been under scrutiny for evasion of US sanctions against Iran and Russia, and financing Hamas, according to Bloomberg.
Binance moves $3.9 billion USDT to hot wallet
Binance recently (12 days ago) moved $3.9 billion USDT on Tron from its cold wallet to hot wallet. The transfer was recorded on the blockchain. Binance didn't immediately respond to FXStreet's request for comment about the transaction. Some market participants are speculating that the move could be related to the DoJ’s alleged demand of over $4 billion to settle the case.
Binance transfers $3.9 billion USDT among its wallets
If the transfer is related to DoJ’s demand, it means that the exchange is preparing to settle with the Justice Department, likely shielding the crypto ecosystem from the fallout of Binance.
Meanwhile, US regulators’ crackdown on crypto exchanges continues. The SEC sued Kraken on Monday, accusing the exchange of running an unregistered national securities exchange. Co-founder Jesse Powell condemned the SEC’s move and said that the exchange had previously settled charges for $30 million in February.
USA's top decel is back with another assault on America. The masochists haven't been happy with the beatings they've been taking in NY and are shopping for a different flavor of RegDom in CA. I thought we settled all their concerns for $30m in Feb. Now they're back for seconds? https://t.co/SkfPJyneUz
— Jesse Powell (@jespow) November 21, 2023
The SEC was also heavily critiqued by Ripple and Coinbase legal officers, which have also been in the regulators’ spotlight.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks

Ripple Price Prediction: How tokenized treasuries could accelerate XRP to $10 by end-2025
The adoption of cryptocurrency-related financial products, including tokenized treasuries, is on overdrive globally, with the focus now shifting to robust networks such as Ripple's XRP Ledger (XRPL).

Sei rallies as Wyoming selects protocol for WYST stablecoin pilot
Sei extends gains above $0.21, decoupling the token from the broader crypto market amid low sentiment and macroeconomic uncertainty. The Wyoming Stable Token Commission selects Sei Network as a candidate blockchain for the WYST, the first fiat-backed stablecoin issued by a US state.

Crypto Today: Bitcoin, Ethereum, XRP nudge higher as geopolitical tensions take a backseat
Bitcoin bulls step up, pushing the price above $106,000, as Trump said he would delay his decision about launching strikes on Iran for up to two weeks. Ethereum rebounds from the 200-day EMA support at $2,477 amid steady interest in the derivatives market.

Solana eyes trend reversal as bearish momentum bottoms out above $140
Solana experiences a minor uptick of under 1% at press time on Friday, with multiple long shadow candles forming above $140 as bearish momentum fades off. The optimism surrounding Solana is on the rise, as evidenced by the SOL Open Interest reaching a weekly high.

Bitcoin Weekly Forecast: The calm before the storm
Bitcoin (BTC) price remains steady above a key support level, trading slightly above $106,000 at the time of writing on Friday. The uncertainty looms as geopolitical tensions between Iran and Israel show no sign yet of an exit strategy from either side.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.