A U.S. court has sanctioned a monumental penalty exceeding $4.3 billion against Binance, the world’s premier cryptocurrency exchange, for breaches of anti-money laundering and sanctions laws. The ruling, emanating from the bench of U.S. District Judge Richard Jones in Seattle, stems from Binance’s guilty plea to charges that implicated the exchange in a series of internal control failures.
The comprehensive penalty encompasses a $1.81 billion criminal fine alongside a forfeiture amounting to $2.51 billion. This financial reckoning was ratified shortly after federal prosecutors proposed amendments to the bond conditions for Binance founder Changpeng Zhao, sparking objections from Zhao’s legal team.
Binance’s November plea concluded an extensive investigation, revealing that the exchange neglected to report over 100,000 transactions flagged for suspicions of terrorism financing, implicating groups such as Hamas, al Qaeda, and ISIS. Additionally, the platform was implicated in facilitating transactions related to the sale of child sexual abuse materials and receiving significant sums from ransomware attacks.
In its response to the verdict, Binance acknowledged its past shortcomings, outlining the enhancements made to its anti-money laundering and know-your-customer procedures. The company emphasized its commitment to complying with the requirements set forth in the plea agreement.
Changpeng Zhao, who has been on a $175 million bond in the United States since his November plea of guilty to money laundering charges, faces a personal fine of $50 million and was mandated to resign from his position as CEO of Binance.
Following Judge Jones’ directives, the proposed modifications to Zhao’s bond stipulate that he remains within the continental U.S., under the oversight of court officers, until his sentencing scheduled for April 30. Additional conditions require Zhao to give a three-day notice for any travel, relinquish his passports, and maintain his current residence unless a change is authorized. Pretrial services have also suggested that Zhao be subject to location monitoring.
Despite several discussions between prosecutors and Zhao’s legal representatives regarding these amendments, Zhao’s lawyers have expressed opposition to the motion as formulated. Attempts to reach Zhao’s legal team for comments have so far been unanswered.
