US Department of Justice officials announced that Binance CEO Changpeng "CZ" Zhao will plead guilty to a felony charge as part of a settlement of criminal and civil cases with the exchange.
At a press conference on November 21, Attorney General Merrick Garland Announced CZ filed his declaration in person in a United States federal court despite residing outside the country. He added that there would be a $4.3 billion settlement with Binance and CZ that would cover "civil regulatory enforcement actions" by government departments, including the US Treasury and the Commodity Futures Trading Commission (CFTC).
According to Garland, Binance's policies allowed criminals involved in illicit activities to move "stolen funds" through the exchange. She alleged that the exchange was โpretending to complyโ with US federal laws by offering avenues for certain users to access Binance despite its ties to illicit funds. The Attorney General said the exchange would be subject to monitoring and reporting requirements, and would be required to file suspicious activity reports for past transactions.
โBinance prioritized its profits over the safety of the American people,โ Garland said. "Using new technology to break the law does not make you a disruptor, but a criminal."
Following Garland, Treasury Secretary Janet Yellen said Binance would pay more than $3.4 billion in fines to the Financial Crimes Enforcement Network (FinCEN) and approximately $1 billion to the Office of Foreign Assets Control ( OFAC) from the Treasury as part of the agreement. CFTC Chairman Rostin Behnam said Binance would pay $2.7 billion in civil monetary penalties and disgorgement, CZ would pay $150 million and former compliance chief Samuel Lin would pay $1.5 million under the proposed settlement.
In a blog post on November 21, Binance saying was โpleasedโ to have reached resolution with US authorities, stating that the exchange โnever failed to maintain [its] fundamental values โโof safety and user protection." CZ Announced in resigned as CEOand Binance's global head of regional markets, Richard Teng, will take over the role.
"I made mistakes and I must take responsibility," CZ said. "This is what is best for our community, Binance and me. [...] "I haven't had a single day of real rest (without a phone) for the last 6 and a half years."
We are pleased to share that we have reached a resolution with several US agencies related to their investigations.
This allows us to turn the page on a challenging but transformative chapter of learning that has helped us become a stronger, safer and even more protected platform.
-Binance (@binance) November 21, 2023
Related: Court Reveals Indictments Against Binance and CZ, Detailing Expected Guilty Pleas
According to the indictment against CZ filed under seal on November 14, Binance CEO faced a charge for failing to maintain an effective anti-money laundering program on the crypto exchange, violating the Bank Secrecy Act. Court records related to the charges against Binance CZ remained sealed from Nov. 14 to Nov. 21 following prosecutors' motions in agreement with both sides.
The agreement between US officials and Binance largely concluded many of the civil and criminal investigations into the exchange dating back months. Cryptocurrency exchange still has a civil case pending with the US Securities and Exchange Commission (SEC), which charged Binance, Binance.US, and CZ for securities law violations in June.
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