Billion dollar fine against Binance: US authorities demand over four billion US dollars from the world’s largest crypto exchange

• Long-standing US criminal proceedings against Binance
• Billion dollar settlement for Binance and Zhao
• Founder Changpeng Zhao is leaving the company

The world’s largest cryptocurrency exchange Binance has been under observation by the Ministry of Justice since 2018. Then in 2020, Binance was asked by federal prosecutors to provide internal records of anti-money laundering efforts and communications involving Zhao. Now the long-standing US criminal proceedings have come to an end.

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Violations of money laundering and sanctions laws at Binance

In particular, the accusation was that Binance had circumvented money laundering and sanctions laws. Finance Minister Janet Yellen noted that Binance was guilty of “persistent and serious violations of U.S. anti-money laundering and sanctions laws,” CNBC quoted prepared remarks as saying. In the proceedings, founder and company boss Changpeng Zhao has now pleaded guilty to violating these laws, among other things, as Reuters reports. In order to settle the allegations, a settlement worth billions was agreed upon. The US Department of Justice is demanding around $4.3 billion in fines from Binance, according to recently published court documents. In addition, Binance will be placed under supervision for three years. “Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed – now it is paying one of the largest corporate fines in U.S. history,” CNBC quoted Attorney General Merrick B. Garland as saying in a press release.

CEO Zhao is leaving Binance

Zhao himself has to pay another $50 million and leave Binance. He is also not allowed to hold any positions at Binance during the three-year supervision period, reports the FAZ. In a post on

Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it’s the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.

Binance is no longer a baby. It is…

– CZ ?? BNB (@cz_binance) November 21, 2023

Zhao also announced his successor: Richard Teng – he was previously responsible for business outside the USA. “Richard is a highly qualified leader and will steer the company through its next phase of growth with over three decades of financial services and regulatory experience.” However, Zhao will remain a shareholder: “As a shareholder and former CEO with historical knowledge of our company, I remain available to the team to provide advice as needed, in accordance with the framework set out in our US regulatory decisions.” But now he will take a break: “I haven’t had a single day of real break (without a phone) in the last six and a half years.” Towards the end of his statement on X, Zhao emphasized that Binance had not misused user funds or been involved in market manipulation.

Editorial team finanzen.net