Binance’s $4.3B Anti-Money Laundering Settlement Approved

A federal judge has officially approved a significant plea deal involving Binance, the well-known cryptocurrency exchange, which mandates the payment of over $4.3 billion in fines and restitution. The agreement, greenlit by U.S. District Judge Richard Jones, consists of a staggering $1.8 billion in fines along with $2.5 billion in forfeited property. This decision follows Binance and its founder Changpeng Zhao pleading guilty late last year to charges related to violating anti-money laundering laws and sanctions.

As part of the plea deal, Binance will undergo rigorous monitoring of its compliance by an independent firm for a duration of up to five years. Additionally, the company is obligated to undergo a comprehensive review of its ethics programs, policies, procedures, and systems to ensure adherence to regulatory standards and practices.

A spokesperson for Binance emphasized the company’s acknowledgment of responsibility for its actions and highlighted the substantial progress made in meeting the requirements outlined in the plea agreement. Notably, as a consequence of the deal, Changpeng Zhao will step down from his role as chief executive and pay a substantial $50 million fine. Zhao, who has been released on a $175 million bond, is scheduled for sentencing on April 30, with prosecutors pushing for a penalty exceeding the suggested 18-month timeframe.

The plea agreement, finalized in November with the Justice Department, effectively resolves charges brought forth by various agencies within the Treasury Department and the U.S. Commodity Futures Trading Commission. Treasury Secretary Janet Yellen criticized Binance for its blatant disregard of legal obligations and its failure to prevent suspicious transactions involving groups such as Hamas, the Palestinian Islamic Jihad, and Al Qaeda. Prosecutors argued that Binance and Zhao knowingly violated anti-money laundering laws and deliberately avoided registering as a money services business to capitalize on the U.S. market without adhering to U.S. laws.

According to the terms of the plea agreement, Binance must pay $898 million within the next 30 days, with the remaining $1.8 billion in fines due no later than 15 months from now. The agreement also includes stringent measures for ongoing compliance monitoring, ensuring that Binance upholds its commitment to the agreement through continuous oversight and regular reviews of its programs and systems.