A federal judge has approved the $4.3 billion plea deal that Binance, a prominent cryptocurrency exchange, has negotiated with the United States Department of Justice. Binance will plead guilty to violations of sanctions and anti-money laundering laws.
According to a news release by Yahoo Finance, the Department of Justice publicized this settlement last November but was pending approval from a judge. It was discovered that Binance had been violating money laundering laws for over a year. As part of the plea deal, Binance CEO Changpeng Zhao was required to step down from his position. Zhao pleaded guilty to failing to maintain an effective anti-money laundering program, which constituted a violation of the Bank Secrecy Act. A statement by Binance noted, "We are gratified by the recognition we have received from regulators regarding our cooperation and significantly enhanced compliance. We look forward in the coming months to continuing to build on our efforts to set the industry standard for compliance, security, and transparency."
CoinDesk reported that Zhao also agreed to pay a $50 million fine. Richard Teng has assumed the role of CEO of Binance, which is recognized as the largest crypto exchange globally. The $4.3 billion settlement ranks among one of the most substantial penalties obtained from a corporate defendant. In addition to settling with the Department of Justice, Binance also reached agreements with the U.S. Treasury Department and the Commodity Futures Trading Commission (CFTC). The company is obliged to appoint a compliance monitor for three years and report all compliance efforts to the United States government.
As Zhao anticipates his sentencing hearing in April, U.S. prosecutors have proposed stricter bond conditions for him. According to CNBC, they recommend that Zhao provide prosecutors with three days' notice before any domestic travel within the United States. They also suggest that Zhao surrender his Canadian passport and refrain from changing his place of residence without prior approval.
