Binance Holdings Inc. will pay one of the largest corporate fines in U.S. history after a judge approved the company’s guilty plea agreement, according to the latest report. This comes months after the cryptocurrency exchange and its former CEO and founder Changpeng Zhao pleaded guilty to violating anti-money laundering laws, inching closer to a lengthy investigation by the Department of Justice (DOJ) and other regulators.
Binance takes full responsibility for its past actions: Attorney
At a court hearing in Seattle on Friday, February 23, U.S. District Judge Richard Jones approved a plea agreement for the world’s largest cryptocurrency exchange. The deal includes Binance paying a $4.3 billion fine, appointing a new CEO, and introducing a compliance system that will be monitored by an independent company for five years.
Prosecutors urged a judge to grant the guilty plea in a Feb. 16 filing, saying Binance exposed the country’s financial system to those seeking to “exploit our system for their own gain.” Prosecutors argued in the document:
In summary, given the nature and severity of the Binance misconduct, it was intentionally orchestrated by senior management and had hundreds of millions of dollars in collateral consequences.
Jones shared his thoughts on the criminal charges against Binance. “This is truly a case where the company’s ethics were undermined by greed,” the judge said during Friday’s hearing.
Binance’s general counsel Josh Eaton admitted that the cryptocurrency exchange was aware that it was responsible for US financial laws. “Despite knowing these facts, the defendant made a calculated decision not to follow U.S. law,” the defense attorney said.
But the exchange’s lawyer told the judge that Binance acknowledged its wrongdoing and “takes full responsibility for its past actions.” Eaton added at the hearing:
We are also proud of the compliance enhancements we have made over the past few years.
What will be CZ’s next sentence?
As part of the plea deal, Changpeng Zhao agreed to step down as CEO of Binance and pay a $50 million fine. However, his former ex-officer is currently awaiting a sentencing trial scheduled for April 30, 2024.
CZ could face up to 18 months in prison, although prosecutors could seek up to 10 years in prison. Nonetheless, the co-founder remains free in the United States despite travel restrictions after securing $175 million bail.
The cryptocurrency total market capitalization on the daily timeframe | Source: TOTAL chart on TradingView
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