Binance and Former CEO Ordered to Pay $2.7 Billion to CFTC for Money Laundering
US Court Approves Order for Binance to Pay $2.7 Billion to CFTC
A U.S. court has approved an order against cryptocurrency exchange Binance and its former CEO, Changpeng Zhao, for money laundering, following a case brought by the U.S. Commodity Futures Trading Commission (CFTC). The court has ordered Binance to pay $2.7 billion to the CFTC, while Zhao will pay $150 million, according to the agency.
Settlement Reached in Late November
The U.S. District Court for the Northern District of Illinois has approved the previously announced settlement and entered a consent order of permanent injunction, civil monetary penalty, and equitable relief against Zhao and Binance, as stated by the CFTC. The settlement was reached in late November.
Civil Monetary Penalty Imposed
The court has imposed a $150 million civil monetary penalty personally against Zhao and required Binance to disgorge $1.35 billion of ill-gotten transaction fees and pay a $1.35 billion penalty to the CFTC, according to the agency.
Zhao’s Guilt Plea and Binance’s Response
In November, Zhao stepped down and pleaded guilty to breaking U.S. anti-money laundering laws as part of a settlement resolving a years-long probe into the world’s largest cryptocurrency exchange. Binance acknowledged the company’s responsibility for historical criminal compliance violations and expressed the opportunity to turn the page.
Violations and Acknowledgements
Authorities have revealed that Binance broke U.S. anti-money laundering and sanctions laws, failed to report suspicious transactions with organizations described as terrorist groups, and engaged in transactions related to child sexual abuse material and ransomware proceeds.
Binance’s penalties underscore the growing scrutiny and enforcement actions faced by the cryptocurrency industry as regulators seek to address illicit activities and protect consumers.
