According to data from Chainalysis, a blockchain analytics company, cryptocurrency wallets associated with the popular stock exchange, Binance, moved around $4 billion in stablecoin ahead of a potential settlement with the US Department of Justice (DOJ) and the Internal Revenue Service (IRS).
The transactions involving the stablecoin movement were made in both USDT and USDC and took place between November 29 and December 1, which coincides with the timeline of the settlement rumor that was initially reported by Bloomberg on November 27.
The DOJ and IRS are reportedly investigating Binance for alleged violations of U.S. money laundering laws stemming from activities related to the illicit trading of bitcoin (BTC). As part of the settlement talks, Binance is expected to pay a fine of up to $300 million.
The increased activity in Binance wallets likely indicates that the exchange was trying to move funds in anticipation of the potential settlement with the government. It is unclear whether the funds in question were related to the investigation, though the large amount of stablecoin suggests that Binance was taking proactive steps to mitigate any potential losses.
The DOJ and IRS have yet to confirm the settlement rumors and it is unclear when or if a settlement will be announced. In the meantime, Binance continues to operate normally, and the $4 billion in stablecoin movement appears to be an attempt by the exchange to maintain financial stability as the investigation continues.
