The largest cryptocurrency exchange in the world, Binance, entered a guilty plea and agreed to pay a fine of more than $4.3 billion to the United States government for breaking federal anti-money laundering and sanctions laws due to internal control deficiencies.
The plea was accepted by U.S. District Judge Richard Jones in Seattle. It includes a felony fine of $1.81 billion and forfeiture of $2.51 billion. The prosecution had suggested alterations to Binance founder Changpeng Zhao’s bond around an hour prior, which caused Zhao’s attorneys to oppose.
Plea Was Announced In November
After a years-long investigation, which showed that the exchange had neglected to notify over 100,000 suspicious transactions involving designated terrorist organizations like Hamas, al Qaeda, and the Islamic State of Iraq and Syria, or ISIS, Binance announced its plea in November.
According to prosecutors, Binance’s platform was one of the biggest recipients of ransomware revenues and encouraged the selling of items depicting child sexual assault.
What does Binance say
Binance issued a statement in which it acknowledged its mistakes, improved its “know-your-customer” and anti-money laundering procedures, and made “significant progress” toward the adjustments called for by its plea deal.
Zhao also pleaded guilty in November to money laundering offenses, and since then, he has been released from custody in the United States on a $175 million bond. In exchange for his plea, he was ordered to resign as CEO of Binance and pay a $50 million punishment.
What the prosecutors said?
The proposed bail modifications, according to the prosecution, are intended to comply with Jones’ directives that Zhao remain in the continental United States and be supervised by court officers until his sentencing on April 30.
Zhao is required to give three days’ notice of any trip arrangements, give up his passports, and continue living in his current residence until he receives permission to move. Officers in charge of pretrial services are suggesting that Zhao be put through location monitoring as well.
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