A US district judge has approved the plea deals between Binance, former CEO Changpeng ‘CZ’ Zhao, and the Department of Justice (DOJ). The settlement, reached on November 21, 2023, concludes the investigations into Binance’s failure to register as a money services business and violations of the Bank Secrecy Act (BSA). As part of the settlement, Binance will pay a hefty $4.3 billion.

The allegations against Binance centered on its failure to register as a money services business while serving US customers. Binance was also required to register with the Financial Crimes Enforcement Network (FinCEN) and implement an anti-money laundering (AML) program. The settlement highlights the seriousness of the regulatory violations and imposes a significant financial penalty on Binance.

Former CEO CZ has acknowledged guilt in breaching the BSA, leading to the dismissal of Justice Department investigations. The plea agreement was ratified by Seattle District Court Judge Richard Jones on December 6, 2023. The sentencing is scheduled for February 23, 2024.

Court documents revealed that Binance admitted to prioritizing growth and profits over compliance with US laws. The admission of regulatory non-compliance underscores the challenges faced by platforms seeking rapid expansion in a tightly regulated financial environment.

Following the settlement, CZ resigned as the CEO of Binance, with Richard Teng assuming the role. Binance is now subject to increased oversight by federal authorities, indicating heightened scrutiny on cryptocurrency platforms.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	Middle East
Countries	🇺🇸
Sentiment	neutral
Relevance Score	1
People	Richard Jones, Changpeng Zhao, Richard Teng
Companies	Department of Justice, Binance, Financial Crimes Enforcement Network, Commodity Futures Trading Commission, Office of Foreign Assets Control
Currencies	US Dollar
Securities	None