Binance said it ‘accepts responsibility’ for its past actions as the judge approved the guilty plea.
Binance Holdings Ltd. will pay one of the largest corporate fines in U.S. history after a judge approved a plea agreement on Friday that requires the exchange to pay $4.3 billion.
“Binance accepts responsibility for the company’s past actions and has already made significant progress in taking the necessary actions under the terms of this plea agreement,” a Binance spokesperson said in a statement to The Block. Judge Richard Jones approved the plea agreement Friday at a hearing in Seattle.
Binance, the world’s largest cryptocurrency exchange, and former CEO Changpeng Zhao agreed in November to resolve criminal charges with the Justice Department and other federal agencies. Prosecutors said Binance did not have the necessary components of an anti-money laundering program in place, including know-your-customer (KYC) requirements, and never submitted any suspicious activity reports to regulators. The wrongdoers were then able to use Binance to conduct mixed-service transactions and transfer funds, prosecutors said last year.
Binance agreed to pay an unprecedented $4.3 billion in fines, appoint a new CEO and install external compliance monitors for three years.
A Binance spokesperson on Friday said the company had made “significant compliance enhancements” around KYC and anti-money laundering detection over the past few years.
“We look forward to continuing our efforts to set industry standards for compliance, security, and transparency in the coming months,” a Binance spokesperson said. “We are excited to put this matter behind us as we continue on our path to becoming the world’s most trusted and secure digital asset exchange.”
test And the lawyers who defend Binance He asked the court to accept the plea agreement, according to court documents filed last week.
Sentencing expected for CZ
Zhao, also known as CZ, is currently awaiting sentencing. April 30thAfter pleading feeling guilty He resigned from his position as Binance CEO in November last year after violating the Bank Secrecy Act. He remains free on bail in the United States after being released on $175 million bail.
Zhao faces up to 18 months in prison under federal guidelines, but U.S. prosecutors have freely argued that the former CEO could be sentenced to up to 10 years.
Binance appointed Richard Teng, previously Global Head of Regional Markets at Binance, as its new head. chief executive November.
Tim Copeland contributed reporting.
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