Binance’s $4.3 Billion Payment in US Plea Deal Approved by Judge (2024)

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Binance’s $4.3 Billion Payment in US Plea Deal Approved by Judge? ›

A federal judge approved a plea deal by Binance on Friday, requiring the beleaguered cryptocurrency exchange to pay more than $4.3 billion in fines and restitution, after the company and its founder Changpeng Zhao

Binance Holdings, the world's biggest cryptocurrency exchange, is to pay US$4.3 billion for violations of anti-money laundering and sanctions laws in a settlement approved by a US judge on Friday (Feb 23).

U.S. District Judge Richard A. Jones credited the founder and former CEO of Binance for taking responsibility for his wrongdoing. Zhao, 47, pleaded guilty in November to one count of failing to maintain an anti-money-laundering program.

SEATTLE, April 30 (Reuters) - Changpeng Zhao, the former chief executive of Binance, was sentenced on Tuesday to four months in prison after pleading guilty to violating U.S. laws against money laundering at the world's largest cryptocurrency exchange.

Prosecutors alleged in the charges that Binance did not have any "know-your-customer requirements," which is a direct violation of U.S. money-laundering laws. Even though Binance had no real-estate offices in the U.S., it offered services to U.S. users that required following U.S. law.

“Our team of investigators uncovered that Binance disregarded anti-money laundering Know Your Customer laws, failed to register as a money transmitter, and willfully violated U.S. sanctions tied to the International Emergency Economic Powers Act.

Binance Holdings Ltd. will pay $4.3 billion after a judge approved a plea deal that levies one of the largest criminal penalties in US history against the world's biggest cryptocurrency exchange.

In response, Binance and other investors opened Binance.US, a separate exchange designed to comply with all applicable US federal laws, which nonetheless is banned in six states: Hawaii, Idaho, Louisiana, New York, Texas, and Vermont.

Binance was charged with three counts, including money laundering violations, conspiracy to conduct an unlicensed money transmitting business in the US, and sanctions violations. The settlement negotiated between the two sides will resolve allegations of criminal wrongdoing.

The SEC charged Binance founder Changpeng Zhao and Binance.US with securities law violations in 2023. The regulator alleged that Binance and Zhao secretly controlled Binance.US. Zhao was also sentenced to four months in prison in April 2024 for violating the Bank Secrecy Act.

Who is the real owner of Binance? ›

Changpeng Zhao, known as "CZ," founded Binance, which rapidly grew to be the largest cryptocurrency exchange in the world by daily trading volume. With a net worth estimated at $39.6 billion as of March 2024, Zhao's story reflects the fast-paced and unpredictable world of cryptocurrency.

Binance's Changpeng Zhao Clings To Multibillion-Dollar Fortune After Guilty Plea.

Binance.US is a highly regulated, full-reserve platform that securely holds all customer assets on a 1:1 basis. We leverage battle-tested technology and proven security measures to help millions of customers access the crypto economy with confidence.

While it is possible to recover funds that have been lost through a scam on the Binance exchange, it is not guaranteed.

Our automated system will lock your ability to withdraw assets under certain circ*mstances. To pinpoint the exact reason, take a look at the common causes.

The DOJ's approximately $4.3 billion fine against Binance is one of the largest penalties it has ever obtained from a corporate defendant in a criminal matter.

A federal judge approved a plea deal by Binance on Friday, requiring the beleaguered cryptocurrency exchange to pay more than $4.3 billion in fines and restitution, after the company and its founder Changpeng Zhao pleaded guilty late last year to breaking anti-money laundering laws and violating sanctions.

The settlement agreement between OFAC and Binance (the Binance Settlement Agreement) resolved Binance's potential civil liability for apparent violations of multiple sanctions programs between 2017 and 2022, and was part of coordinated resolutions with FinCEN, CFTC, and DOJ.

In June 2024, Binance was imposed with a fine of US$ 2.25 million by the Financial Intelligence Unit, for operating in India in violation of local anti-money laundering regulations.

US District Judge Richard Jones in Washington state approved a plea agreement between Binance and federal prosecutors which calls for the company to pay a fine of $1.8 billion and forfeiture of $2.5 billion.