Binance, the world’s largest cryptocurrency exchange, has agreed to a landmark settlement with the U.S. Department of Justice (DOJ), resolving charges of violating sanctions and money-transmitting laws. The company will pay $4.3 billion, one of the largest penalties ever obtained from a corporate defendant in the United States. This settlement marks a pivotal moment in the crypto industry, reflecting the increasing scrutiny and regulatory pressures facing digital currency platforms.
Changpeng “CZ” Zhao, the founder of Binance, has pleaded guilty to charges related to violations of the Bank Secrecy Act, including operating an unlicensed money-transmitting business and failing to maintain an adequate anti-money laundering program. In addition to the company’s settlement, Zhao personally agreed to pay a $50 million fine. Following these developments, Zhao will step down from his role as CEO, with Richard Teng, a former Abu Dhabi regulator, slated to take over the leadership position.
The plea agreement stipulates several compliance measures Binance must undertake, including the appointment of an independent compliance monitor for a three-year period and regular reporting of its compliance efforts to the U.S. government. Zhao is prohibited from any management or operational involvement in Binance during this time, illustrating the significant impact of the settlement on the company’s leadership structure.
These actions by Binance and its founder underscore the intense regulatory focus on the cryptocurrency sector, particularly regarding adherence to U.S. banking regulations and sanctions laws. Binance, with approximately 150 million users, acknowledges the need for restructuring and emphasizes its commitment to stronger compliance and collaboration with regulators. This case sets a precedent for the level of regulatory compliance expected from major players in the rapidly evolving digital currency landscape.
The post Binance agrees to historic $4.3 billion settlement with U.S. authorities appeared first on Crypto Reporter.
