A US judge in Seattle has approved Binance’s guilty plea and imposed a hefty penalty of over $4.3 billion (approximately Rs 35,642 crore) for breaches of federal anti-money laundering and sanctions regulations. This ruling comes as a result of internal control failures at Binance, the world’s largest cryptocurrency exchange.
US District Judge Richard Jones gave the nod to the plea, which entails a staggering $1.81 billion in criminal fines and $2.51 billion in forfeiture. The decision was made shortly after the government suggested adjustments to Binance founder Changpeng Zhao’s bond arrangements, a move that was met with objection from Zhao’s legal team.
Binance’s admission of guilt, declared last November, draws a line under a prolonged investigation uncovering the exchange’s failure to report over 100,000 suspicious transactions. These transactions involved designated terrorist groups such as Hamas, al Qaeda, and ISIS. Additionally, prosecutors revealed that Binance’s platform facilitated the trade of child sexual abuse materials and was a major recipient of ransomware proceeds.
Responding to the ruling, Binance expressed acceptance of responsibility and highlighted efforts to enhance its anti-money laundering and “know-your-customer” protocols. The exchange claimed significant strides towards meeting the terms of its plea agreement.
Meanwhile, Changpeng Zhao, who has been out on a $175 million bond since his guilty plea, is facing a $50 million fine and must relinquish his position as Binance CEO. Prosecutors have proposed alterations to Zhao’s bond conditions, aligning with Judge Jones’ directives for Zhao to remain within the continental US and under court supervision until his sentencing on April 30.
These proposed changes include Zhao providing advance notice of any travel plans, surrendering his passports, and maintaining his current residence unless approved otherwise. Additionally, pretrial services officers have recommended location monitoring for Zhao.
Although discussions between prosecutors and Zhao’s legal team have taken place on multiple occasions, objections have been raised to the proposed modifications.
The legal proceedings are taking place under the cases U.S. v Binance Holdings Ltd and US v. Zhao, both in the U.S. District Court, Western District of Washington.
