US Judge Approves Binance’s $4.3 Billion Guilty Plea and Penalty
Acceptance of Guilty Plea
A U.S. judge on Friday accepted Binance’s guilty plea and more than $4.3 billion penalty for violating federal anti-money laundering and sanctions laws through lapses in internal controls at the world’s largest cryptocurrency exchange.
Plea Approval and Bond Modification
U.S. District Judge Richard Jones in Seattle approved the plea, which includes a $1.81 billion criminal fine and $2.51 billion of forfeiture, about an hour after the government proposed changes to Binance founder Changpeng Zhao’s bond, drawing an objection from Zhao’s lawyers.
Resolution of Probe
Binance’s plea announced in November resolved a years-long probe that found the exchange had failed to report more than 100,000 suspicious transactions involving designated terrorist groups including Hamas, al Qaeda, and ISIS.
Platform Violations
Prosecutors revealed that Binance’s platform supported the sale of child sexual abuse materials and was among the largest recipients of ransomware proceeds.
Binance’s Response
In a statement on Friday, Binance said it accepted responsibility, upgraded its anti-money laundering and “know-your-customer” protocols, and made significant progress toward changes required under its plea agreement.
Zhao’s Legal Situation
Zhao has been free in the United States on a $175 million bond after pleading guilty to money laundering violations and stepping down as Binance chief executive.
Bond Conditions
Prosecutors proposed bond changes for Zhao, requiring him to stay in the continental United States, provide travel plans in advance, surrender passports, and maintain his current residence unless approved otherwise.
Legal Disputes
Prosecutors and Zhao’s lawyers have been in discussions regarding the proposed bond changes, with the lawyers objecting to the motion as written.
Case Details
The cases are U.S. v Binance Holdings Ltd, U.S. District Court, Western District of Washington, No. 23-cr-00178, and U.S. v. Zhao in the same court, No. 23-cr-00179.
