US judge approves US$4.3 billion penalty for crypto giant Binance (2024)

FAQs

US judge approves US$4.3 billion penalty for crypto giant Binance? ›

US judge approves US$4.3 billion penalty for crypto giant Binance. 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).

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.

Zhao pleaded guilty late last year to money-laundering violations and stepped down as CEO of Binance. The company itself was fined $4.3bn. Zhao was fined $50m last year. Judge Richard Jones told Zhao that there were a number of mitigating factors in his sentencing, including that he had cooperated with law enforcement.

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.

On November 21, 2023, a US judge convicted Binance on multiple charges—including violations of the Bank Secrecy Act, money laundering schemes, unlicensed money transmitting, and sanctions violations.

On June 13, 2023, Binance.US began its transition to a crypto-only exchange, which means we no longer accept USD deposits and withdrawals for the time being — until we are able to secure stable banking partners.

Binance has implemented restrictions for U.S. residents due to compliance reasons, which led to the creation of Binance.US. However, keep in mind that while Binance.US shares the Binance brand, it's managed by a different company, BAM Trading Services, allowing it to adhere to U.S. regulations.

Zhao is the founder of Binance, the world's largest cryptocurrency-exchange by volume. The company offers markets in more than 360 cryptocurrencies and has said it has over 150 million users. Zhao was sentenced to four months jail in April 2024 after pleading guilty to anti-money laundering violations.

Prosecutors argued Binance and Zhang “knowingly failed” to register as a money services business and “willfully” failed to implement an effective anti-money laundering program to “profit from the U.S. market without complying with U.S. law.”

Is Binance Exchange Safe? Binance is often considered one of the safest exchanges in the world if you consider the level of security. If the exchange crashed or a hacker stole assets or funds, the SAFU reimburses its users from the $1 billion fund. Not every platform has an insurance fund in place.

Why did CZ only get 4 months? ›

The government was in a weak position as it sought to impose an above-guidelines sentence because Zhao had pled guilty only to failing to set up an adequate anti-money-laundering program at Binance, rather than to money laundering itself or other more serious crimes.

According to Bloomberg Billionaires Index, Zhao was ranked the 69th-richest person in the world, and richest Canadian overall, with a net worth estimated at $37.3 billion as of May 2024.

With this new registration, Binance can now fully operate in India. Indian users have full access to Binance's services, including its website and app. Binance's CEO, Richard Teng, said that this move shows Binance's dedication to growing responsibly in India while making sure it follows all local regulations.

However, on Nov. 21, 2023, the U.S. Department of Justice (DOJ) officially announced criminal charges against Binance and CEO Changpeng Zhao. The main charge is vast flows of dirty money from countries including Russia, Iran and Cuba.

While it's essential to stay cautious and informed about potential scams, it's crucial to note that Binance does not provide refunds for losses due to scams or unauthorized transactions. It's important to practice diligence in safeguarding your account and funds to prevent falling victim to scams.

Despite its rapid growth, Binance failed to meet its regulatory obligations, leading to a historic fine of over $4.3 billion. This landmark penalty underscores the critical importance of regulatory adherence, particularly in industries prone to money laundering and sanctions violations.

Yes. Binance US is required to report to the IRS under existing guidance and issues US users with more than $600 in income with a 1099 form.

If you believe you have been scammed on Binance, you should contact their customer support team immediately and provide them with as much information as possible about the scam. They may be able to investigate the situation and potentially refund your funds if they determine that you were indeed scammed.