Binance reaches $4 billion settlement with Department of Justice, CEO CZ resigns
Key Takeaways
- Binance and CEO Changpeng “CZ” Zhao have reached a $4.3 billion settlement with U.S. authorities to resolve criminal and civil lawsuits.
- Changpeng Zhao pleaded guilty to felony charges and announced his resignation as CEO of Binance.
- The settlement includes significant financial penalties and resolves most of the investigations against Binance while the SEC case is still pending.
The U.S. Department of Justice has reached an important settlement with Binance.One of the world’s best cryptocurrency exchanges.
Settlement amount worth $4.3 billion, resolving various criminal and civil lawsuits against the cryptocurrency exchange and its CEO Changpeng “CZ” Zhao. As part of the contract, CZ pleaded guilty to a felony charge. And announced his decision. Binance CEO resigns.
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Attorney General Merrick Garland said at a press conference on November 21: CZ filed the petition in U.S. federal court despite living abroad..
Comprehensive payment system Covers “private regulatory enforcement actions.” This is data released by the U.S. Treasury and the Commodity Futures Trading Commission (CFTC). Garland highlighted Binance’s Failure to Comply with U.S. Federal Law, citing the role of cryptocurrency exchanges in facilitating the movement of illicit funds by criminals. He said:
Binance prioritized profits over the safety of the American people. Using new technology to break the law doesn’t make you a vandal, it makes you a criminal.
Treasury Secretary Janet Yellen explained the financial elements of the agreement. Binance will pay a fine of more than $3.4 billion to the Financial Crimes Enforcement Network. and approximately Provided $1 billion to the Treasury Department’s Office of Foreign Assets Control.
Additionally, CFTC Chairman Rostin Behnam announced: Binance will pay $2.7 billion in civil fines and clawbacks.with CZ donates $150 million Former Compliance Officer Samuel Lin paid $1.5 million.. Ministry of Justice This resolution provides approximately $1.8 billion in credits..
Binance expressed its satisfaction with the agreement in a blog post dated November 21. Commitment to user security and safety. CZ looks back on his resignation as CEO and recent developments. Advert:
I made a mistake and I need to take responsibility. This is what’s best for our community, Binance, and myself.
He also pointed out: The indictment does not accuse Binance of misusing user funds or engaging in market manipulation..
The indictment against CZ, filed privately on November 14, charges him with: Binance fails to maintain an effective anti-money laundering programHereby Violation of the Bank Secrecy Act. The charges and settlement conclude several civil and criminal investigations against Binance. A civil suit is pending before the U.S. Securities and Exchange Commission alleging violations of securities laws..
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