Binance, one of the largest cryptocurrency exchanges, and its founder Changpeng Zhao, commonly known as CZ, have been facing a series of legal challenges in the United States. The government has filed indictments against Binance and Zhao, accusing them of violating US laws related to money laundering and terror financing. As part of a deal, Zhao has stepped away from Binance, and the penalties imposed on him and the company amount to over $4 billion in fines. These legal troubles began in 2018 when Binance came under suspicion and have since escalated with investigations by various regulatory bodies.In March, Binance faced scrutiny from US Congress, with Senators Elizabeth Warren, Chris Van Hollen, and Roger Marshall sending a letter to CZ and other executives, demanding answers to allegations and financial information. The executives were later accused of lying, leading to further complications.The Commodity Futures Trading Commission (CFTC) filed a lawsuit against Zhao, Binance, and its chief compliance officer, Samuel Lim, alleging trading irregularities and market manipulation. The Securities and Exchange Commission (SEC) also filed a suit against Binance, Binance.US, and Zhao, citing unregistered securities sales and other violations. The SEC obtained an emergency restraining order against Binance.US, resulting in a reduction of its activities in the US.Amidst these legal battles, Binance has experienced a leadership exodus, with several senior members leaving the company. The Justice Department has been considering fraud charges against Binance, and the SEC has been engaged in a discovery process, with Binance.US seeking a protective order against the SEC’s requests.Despite some minor victories, such as the court denying the SEC access to Binance.US’s software, the legal challenges continue. Binance and Zhao have asked the court to dismiss the SEC case, arguing that the agency misinterpreted securities law. Binance has also filed a motion to dismiss the CFTC’s suit, claiming that the agency’s jurisdiction should not extend beyond what is permitted by law.These legal troubles have had an impact on CZ’s personal wealth, with his ranking among the richest people in the world dropping significantly. As the legal battles continue, the future of Binance and its founder remains uncertain.

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Information	Details
Geography	Global
Countries	🇺🇸
Sentiment	negative
Relevance Score	1
People	Chris Van Hollen, Changpeng Zhao, Cynthia Lummis, Elizabeth Warren, French Hill
Companies	Binance, Commodity Futures Trading Commission (CFTC), Justice Department, Binance.US, Hamas, Tether, Washington state, Securities and Exchange Commission (SEC)
Currencies	None
Securities	None