Binance will pay a massive $4.3 billion penalty to the United States Department of Justice after getting a judge's approval for its plea deal and admitting its guilt for the violations and actions of the company. This centers on the era when Changpeng Zhao was its leader, with him and the company engaging in significant violations of sanctions and anti-money laundering feats.
The former CEO of the company already admitted his guilt and is now prohibited from leaving the US before his rescheduled sentencing this April.
Binance to Pay $4.3 Billion for its Sanctions, US Judge Approves
(Photo : Kanchanara from Unsplash)
Bloomberg reported that Judge Richard Jones of the US District Court for the Western District of Washington approved the plea deal from Binance which had the company pledging to pay a whopping $4.3 billion. This settlement was regarded to be the largest criminal penalty in US history, as part of its settlement that would let its operations continue.
Apart from the massive payout, the court also ordered that Binance's future operations would be monitored by an independent firm for as long as five years. While there are no official designations yet, Bloomberg reported that law firm Sullivan & Cromwell is looking to take on this role.
Binance's deputy general counsel, Josh Eaton, said in the court that the crypto exchange "accepts full responsibility for its past and for the reasons we're sitting here today."
Binance Plea Deal for Violations, Anti-Money Laundering Case
The plea deal was taken by Binance where it also admitted its guilt was revealed in November 2023, with the court filing initially revealing the $4.3 billion sum which the company agreed to pay.
In this latest update, Binance said that it already improved its know-your-customer (KYC) and anti-money-laundering compliance, helping them move forward from their scrutinies.
Binance and the Massive Scrutiny of the Crypto Platform
After the fall of FTX, Binance was regarded as the top cryptocurrency platform in the world, but its reign was not for long as the company was also facing significant scrutiny in the US for its actions. The massive crackdown against Binance saw a massive turn of events in 2023, with the case moving forward and seeing developments towards the many complaints and illegal activities.
Zhao, a.k.a. "CZ," went on to resign from his post as Binance's CEO amidst the proceedings, with the co-founder and renowned executive also pleading guilty to the charges filed against him. This centers on federal money laundering charges against him, and with his admission of guilt, Zhao would no longer be allowed to get involved with Binance for at least three years.
Amidst this massive fiasco, Binance also agreed to settle the criminal case and federal sanctions against them for $4.3 billion, regarded as the largest payouts in criminal penalties in US history. Judge Jones recently approved the plea deal by Binance where it would pay the billion-dollar settlement and clear its name, one that would allow it to move forward as a crypto exchange platform without CZ.
