$4.3 Billion Payment In Binance Plea Deal Approved By Judge

Key Points:

• U.S. judge approves Binance plea deal for violating anti-money laundering laws.
• Investigation finds that Binance allowed transactions with terrorist groups and supported illegal activities.

According to Bloombergs, Binance Holdings Ltd., the world’s largest cryptocurrency exchange, has been slapped with a staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws.

U.S. Judge Approves Binance Plea Deal With $4.3 Billion Fine

U.S. District Judge Richard Jones in Seattle approved the Binance plea deal, which includes a $1.81 billion criminal fine and $2.51 billion forfeiture, marking one of the largest criminal penalties in U.S. history.

The judge remarked, “This really is a case where the ethics of the company were compromised by greed,” emphasizing the severity of the transgressions.

As part of the Binance plea deal, the exchange must undergo monitoring by an independent firm for up to five years to ensure compliance. While the monitor has yet to be appointed, Sullivan & Cromwell, a New York-based law firm, is reportedly in contention for the role.

In response, Binance stated it has taken responsibility, strengthened its anti-money laundering protocols, and made significant strides toward fulfilling the requirements of the plea agreement.

Binance’s Breach of Anti-Money Laundering Laws

Late last year, Binance and its founder, Changpeng Zhao, pleaded guilty to charges related to money laundering and sanctions violations after a lengthy investigation. Among the findings were failures to report over 100,000 suspicious transactions involving terrorist groups such as Hamas, al Qaeda, and ISIS, along with support for the sale of child sexual abuse materials and receipt of ransomware proceeds.

Zhao, who has been free on a $175 million bond, also pleaded guilty to money laundering violations and agreed to a $50 million fine, along with stepping down as Binance CEO.

The Department of Justice announced the settlement last November, alleging widespread violations over an extended period. The terms include the hefty penalty, appointment of a compliance monitor, and Zhao’s resignation. Prosecutors recently proposed bond changes to ensure Zhao’s compliance with court orders until his sentencing on April 30.