Summary
TLDR: Binance cryptocurrency exchange pleaded guilty and agreed to pay $4.3 billion in fines and penalties for failing to implement proper due diligence. The fine is the largest in the history of federal financial prosecutions. Binance’s founder, Changpeng Zhao, is awaiting sentencing and is barred from operating any business related to Binance. The company has agreed to cooperate with the government, enhance its compliance program, and adopt an independent compliance monitor.
Key Points
1. Binance accepted a guilty plea and agreed to pay $4.3 billion in fines and penalties to settle its case, marking the largest such assessment in the history of federal financial prosecutions.
2. The penalty imposed on Binance was due to its failure to implement an effective AML program, allowing illicit actors to use its exchange for various criminal activities, including ransomware, darknet market transactions, exchange hacks, and internet-related scams.
3. Binance has agreed to cooperate with the government, enhance its compliance program, and adopt an independent compliance monitor as part of the settlement agreement.