Binance, the world’s largest cryptocurrency exchange, has reportedly executed large-scale crypto asset sales this year, which analysts suggest could be linked to its efforts to settle a $4.3 billion fine imposed by the U.S. Department of Justice (DOJ).
According to MartyParty, Binance may have used its digital assets to discreetly fulfill its financial obligations under the DOJ’s settlement terms, which mandated the payment in “forfeited property” by March 2025.
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Analyst Points to Binance’s Crypto Liquidation Matching DOJ Fine
According to MartyParty Binance’s transactions between January 1 and February 1, 2025, closely align with the total amount required for the DOJ penalty. The exchange reportedly liquidated Bitcoin (BTC) worth $370 million, Solana (SOL) valued at $3.4 billion, and XRP amounting to $230 million.
The cumulative value of these transactions ranged between $4 billion and $4.3 billion, closely matching the DOJ’s fine requirement.
Binance has faced scrutiny for its large crypto asset sales at a time when prices reached their peak during the early market rally. The SOL price plummeted by 40% after Binance completed a mass sell-off, indicating that Binance’s actions might have triggered a larger market decline.
Binance’s 2023 DOJ Settlement and Alleged Violations
In 2023, the DOJ convicted Binance because the platform disregarded anti-money laundering (AML) and Know Your Customer (KYC) regulatory requirements. Research findings showed that Binance enabled unauthorized payments related to ransomware assaults and darknet market transactions.
Binance enhanced its legal troubles through its conduct as an unregistered money transmitter and by breaking U.S. sanctions established by the International Emergency Economic Powers Act.
Binance needed to pay $4.3 billion under the settlement terms while meeting the deadline until March 2025. Inspection data showed that Binance solved the fine through profits from asset sales after the analyst analyzed the settlement agreement terms.
Impact on the Crypto Market and Future Projections
According to MartyParty Binance’s large-scale asset liquidation played a significant role in the recent decline in crypto prices following a strong market rally in January.
Trading data indicates that Solana experienced the sharpest drop among the three major tokens involved in the sales, which aligns with the speculation of Binance selling at the market’s peak.
According to analyst predictions, market stability is expected to improve since the pending settlement of the fine. The price of BTC, SOL, and XRP might rebound due to reduced market selling activity.
The broader crypto market has the potential to improve through Binance’s successful resolution of regulatory challenges, which would decrease business uncertainty.
With just over two weeks left before the DOJ’s deadline, further developments may confirm whether Binance has completed its penalty payment through these transactions.
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