Cryptocurrencies: Crypto exchange Binance has to pay a billion-dollar fine

In the US, cryptocurrency exchange Binance has admitted violating money laundering laws and has to pay a $4.3 billion fine. In addition, company founder and CEO Changpeng Zhao must leave the company for three years and pay a $50 million fine, according to published court documents.

The US Treasury Department spoke of a $3.4 billion settlement with the Financial Crimes Enforcement Agency (FinCEN) and another nearly $1 billion settlement with the Foreign Assets Control Commission. It is therefore the largest settlement in the history of the two authorities.

Binance is the largest trading platform where cryptocurrencies like Bitcoin traded.

On the X platform, Zhao wrote that he no longer sees himself as the head of a start-up in the future. Richard Teng, who was previously responsible for local markets, will take over the head position at Binance.

Disregarding money laundering and sanctions laws

The US judiciary threw Binance and Zhao after years of investigation alleges that he actively circumvented money laundering and sanctions laws and thus made dubious payments amounting to millions possible. According to the prosecution’s allegations, Zhao instructed Binance employees, among other things, to communicate with US customers by telephone so as not to leave any traces.

A year ago, Binance competitor FTX collapsed. A few weeks ago the FTX founder had to… Sam Bankman-Fried in New York for fraud responsible. US investigators were able to convince the jury that Bankman-Fried was secretly diverting customer money for business for his own hedge fund.

Zhao emphasized that US authorities do not accuse Binance of embezzling customer funds or manipulating markets. US Treasury Secretary Janet Yellen accused the platform of enabling “money flows to terrorists, cybercriminals and child molesters.” “Binance has turned a blind eye to its legal obligations in the pursuit of profits,” she said.