A federal judge has accepted a guilty plea from cryptocurrency exchange Binance, along with $4.3 billion in fines and fines, to resolve the case. This is the largest assessment in the history of federal financial prosecutions.
Federal Judge Richard Jones said late Friday he had approved the deal, which includes a $1.8 million criminal fine and $2.5 million forfeiture as financial penalties for failing to conduct the required due diligence in providing services. Reuters report.
“Binance failed to implement an effective AML program, allowing illegal actors to exploit Binance’s exchanges in a variety of ways, including by operating hybrid services that obfuscate the origin and ownership of cryptocurrencies,” U.S. Department of Justice prosecutors said in court documents. It was revealed. “Trading of illegal proceeds from ransomware variants; This includes moving proceeds from darknet market transactions, hacking exchanges, and various Internet-related frauds.”
Prosecutors said the $4.3 billion fine was the largest ever imposed on a financial services business in the history of the U.S. Department of Justice, which they said was “proportionate to the severity of Binance’s criminal conduct.”
“Binance committed serious crimes in a deliberate plan to grow as quickly as possible. “Significant penalties are warranted for such violations,” they explained. “The proposed penalty is appropriate and holds Binance accountable for its criminal actions and provides a needed deterrent to other criminal actors.”
The eye-popping figures were first mentioned last November during the company’s initial negotiations with federal prosecutors, but the final deal was finalized today by Judge Richard A. Jones of the U.S. District Court for the Western District of Washington in Seattle.
Even though the company’s claims have been resolved, it is still unclear what will become of its founder, Changpeng “CZ” Zhao.
Zhao’s sentencing on charges of violating U.S. Justice Department money laundering sanctions on $175 million in bond has now been postponed until April 30. While awaiting sentencing, Zhao is prohibited from engaging in the operation or management of any business, now or in the future: Binance.
Prosecutors now want Zhao to hand over his Canadian passport and provide at least three days’ notice before traveling, CNBC reported today.
According to court documents, Binance pleaded guilty and agreed to pay a hefty fine, while also agreeing to cooperate with the government, strengthen its compliance program, and adopt independent compliance monitors.
Binance has been trying to stay out of legal trouble. Last December, the U.S. District Court for the Northern District of Illinois approved a $2.7 billion settlement between Binance and the U.S. Commodity Futures Trading Commission (CFTC), with Zhao personally receiving $150 million after being indicted on charges of violating the Commodity Exchange Act. had to pay. Other CFTC regulations.
Edited by Ryan Ozawa.
