Binance paid $2.7 billion, CZ paid $150 million
Key Takeaways
- Binance and CZ Zhao will pay a total of $2.85 billion in fines to settle CFTC enforcement action.
- CZ Zhao could face up to 18 months in prison for money laundering and waives his right to appeal within that time.
- Binance’s former chief compliance officer, Samuel Lim, was fined $1.5 million in civil fines for aiding violations and attempting to evade U.S. law.
cryptocurrency giant Binance And former CEO Changpeng “CZ” Zhao was ordered to: A total fine of $2.85 billion must be paid.This marks the resolution of a major legal battle with the U.S. Commodity Futures Trading Commission (CFTC).
According to this resolution: Binance You have to pay the cost. A significant amount of $2.7 billionwhile CZ will be personally fined $150 million.. All of these funds go to the CFTC.
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The settlement recently approved by the U.S. District Court for the Northern District of Illinois is as follows: Culmination of CFTC enforcement actions that began in November.
The CFTC specifically found both. CZ and Binance violated the Commodity Exchange Act (CEA) and CFTC regulations..
The CFTC explained the penalties in a statement:
The court found that Zhao and Binance violated the Commodity Exchange Act (CEA) and CFTC regulations, imposed a civil penalty of $150 million on Zhao personally, and ordered Binance to return $1.35 billion in ill-gotten trading fees. It demanded payment of $1.35 billion in fines. CFTC.
The long legal battle between CZ, Binance, and the CFTC began as follows: The agency sued CZ and the exchange. He was indicted on March 27 on charges of evading federal law and operating an illegal derivatives platform.
As part of the agreement reached on November 21, CZ agreed to step down from his position as CEO of Binance.. Moreover, on the same day, CZ pleaded guilty. Various civil litigation departments One criminal complaint related to the Anti-Money Laundering Act.
The court ruling on December 7 is as follows: CZ remains in the U.S. until sentencing on February 23, 2024. He potentially faces up to 18 months in prison and has promised not to enter any appeals within that time.
The court also ordered this. Binance’s former Chief Compliance Officer Samuel Lim paid a $1.5 million civil penalty. They allegedly aided and abetted Binance’s violations and operated outside the United States with the intent to intentionally evade or evade U.S. law.
In light of these developments, Richard TengBinance’s global head of regional markets, who succeeded CZ as CEO, It emphasized the exchange’s commitment to compliance..
In an interview, Teng assured investors: Binance has undergone significant changesEliminate all “compliance gaps” of the past.
Under the terms of the agreement, both CZ and Binance committed to: Strengthening know-your-customer (KYC) measures for exchanges.
Additionally, Binance is obligated to: Establish a formal corporate governance structureIncludes an independent board of directors, compliance committee, and audit committee.
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