In November 2023, Binance, the world’s largest crypto exchange, pleaded guilty to charges laid by the US Department of Justice (DoJ). As a result of the guilty plea, around $4.3bn in criminal penalties were imposed. The punitive action was one of the most significant corporate fines in US history.
Binance to face five-year monitoring amid money laundering violations
The DoJ had gathered evidence of Binance violating US anti-money laundering laws between US users and customers in countries such as Russia, Cuba, and Syria .
Binance’s CEO, Changpeng (CZ) Zhao, was specifically targeted for knowingly violating US regulatory requirements, resulting in his resignation from the exchange. Moreover, Changpeng paid a $150m fine and is awaiting trial, initially set for 23rd February, 2024 .
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Due to a Seattle Federal Court sentencing memo, the trial date has now been postponed to 30 April 2024. The court didn’t explain the delay in CZ’s sentencing. Yet, former Securities and Exchange Commission official John Reed Stark believed Zhao could face a 12-18 month sentence at a minimum security prison under a plea deal.
Other analysts suggest CZ’s legal team will prefer no jail time, opting for home detention and probation. Meanwhile, another memorandum submitted by US prosecutors suggested that Binance be monitored for five years to ensure it complies with regulations .
Binance is still under legal and regulatory scrutiny in other global regions. That makes it challenging for the exchange to maintain trust among its extensive client base.
Despite these developments, Binance’s BNB has stayed in the green, remaining the fourth-most traded cryptocurrency. It’s trading at $351, recently reaching a monthly high of $366.
