Federal Judge Approved $4.3 Billion Settlement for Binance

Feb. 26, 2024
Federal Judge Approved $4.3 Billion Settlement for Binance

Binance, the world’s largest cryptocurrency exchange, struck a $4.3 billion deal to settle allegations that it violated anti-money laundering and sanctions laws, an agreement approved by a U.S. judge on Friday (Feb 23).

U.S. District Judge Richard Jones in the State of Washington approved the plea with federal prosecutors. The resolution includes a criminal fine of about $1.8 billion and forfeiture of $2.5 billion for the company.

The government argued in a sentencing memorandum that Binance profited from the rules of the U.S. financial system while effectively refusing to adhere to those rules. The consequence, they asserted, was an exchange vulnerable to hundreds of millions of dollars in stolen funds and illicit proceeds.

It said the fine was the largest ever against a money services business and was “commensurate with the seriousness of Binance’s criminal conduct.” Binance CEO Changpeng Zhao pleaded guilty to violating U.S. anti-money laundering laws in an agreement made back in November. He also agreed to resign from his post as part of the agreement.

In 2017, Binance emerged as a startup, but within years, it became a colossal player in crypto trading, making Chan making Zhao a billionaire. Binance faced operational challenges amid market collapse and heightened regulatory scrutiny, impacting its services and legality concerns.

Changpeng Zhao’s Future

Furthermore, After signing the plea agreement with the DOJ and the remaining regulatory authorities of the country, Binance’s situation appears to have changed. The crypto exchange is now fully compliant with U.S. federal laws.

In contrast, Changpeng Zhao has not yet stood in his trial, which may either acquit or convict him in whatever charge he faces. As of November, he has already stepped down as CEO. Richard Teng, Global Head of Binance Regional Markets, has replaced him.

C.Z. admitted Binance’s Bank Secrecy Act violation and resigned as manager, retaining a dominant shareholding position for the platform’s future. He posted bail of 175 million dollars and faces a potential sentence of 18 months in prison. If prosecutors choose, they could extend the sentence to ten years.

Since then, the CEO has been in the United States. Following authorities’ recommendations, he is expected to remain there until his sentencing in April. With new leadership, Binance seeks to improve its compliance with regulatory standards for digital assets. This effort aims to rebuild its battered global reputation as the world’s largest exchange by trade volumes.

Related Reading | MicroStrategy’s Official X Hacked: Over $440K In Crypto Stolen

Rida Fatima

News writer
An ardent wordsmith with a rich five-year background in delving into the realms of finance and cryptocurrencies. Alongside curating captivating blogs, Unique's talents extend to crafting imaginative and engaging content.