Binance and CFTC Reach Settlement, Face Huge Fines
A recent ruling by a U.S. court involved penalties against the crypto platform Binance and its former CEO, Changpeng Zhao, for allegations related to money laundering.
This decision stems from a case brought forward by the U.S. Commodity Futures Trading Commission (CFTC).
As part of the settlement finalized in late November, Zhao has been directed to pay $150 million, while Binance faces a fine of $2.7 billion, both payable to the CFTC, according to the agency’s announcement.
The U.S. District Court for the Northern District of Illinois officially approved the agreed-upon settlement. It included a permanent injunction, civil monetary penalties, and equitable relief against Zhao and Binance, as outlined by the CFTC. The penalties comprise a $150 million fine for Zhao and require Binance to forfeit $1.35 billion from allegedly acquired transaction fees, coupled with an additional $1.35 billion penalty to the CFTC.
Following these developments, Zhao resigned from his position in November and admitted guilt concerning U.S. anti-money laundering laws, culminating in the resolution of a prolonged investigation into the world’s largest crypto exchange.
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The allegations against Binance involve breaches of U.S. anti-money laundering and sanctions laws. Furthermore, authorities claimed that over 100,000 suspicious transactions were not reported, including dealings with entities categorized as terrorist groups by the U.S. Additionally, the exchange failed to report transactions associated with websites known for facilitating the sale of illicit materials and was identified as a significant recipient of ransomware funds.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
