Changpeng Zhao, i.e. Binance, pleads guilty and will pay 4.3 billion dollars in fines
Billionaire Changpeng Zhao, CEO of the world's largest cryptocurrency exchange, Binance, is expected to plead guilty to violations of money laundering rules as part of a deal with the US government that would ease the intense cloud of legal scrutiny looming on the company, a person familiar with the matter tells CNN. Binance is also expected to plead guilty to the charges.
As part of the settlement, Binance agreed to pay $ 4.3 billion in fines and other penalties, a second source tells CNN. Additionally, the CEO personally agreed to pay $50 million in fines .
Zhao, founder and CEO of Binance, has amassed a fortune that Bloomberg pegs at over $23 billion.
News of the settlement, previously reported by the Wall Street Journal, comes as US officials say they plan to announce a "major illicit financial enforcement action" related to cryptocurrencies later Tuesday at an event that will include Attorney General Merrick Garland and the Treasury Secretary Janet Yellen.
The Treasury declined to comment. Binance did not respond to requests for comment.
Binance's alleged crimes
Federal prosecutors on Tuesday unsealed court documents alleging that Binance, led by Zhao, processed transactions from customers who operated illicit mixing services and "laundered proceeds from darknet marketplace transactions, hacks, ransomware and scams." Prosecutors allege that Binance had lax anti-money laundering procedures.
This alleged misconduct paved the way for Binance to become the king of cryptocurrency exchanges, prosecutors allege.
“Partly because of this scheme, and because the defendant prioritized growth, market share, and profits over compliance with U.S. law, Binance became the largest cryptocurrency exchange in the world,” the public said ministries.
Prosecutors allege that Binance “knowingly failed” to register as a financial services company, intentionally violated the Bank Secrecy Act by failing to implement and maintain an effective anti-money laundering program, and intentionally caused violations of U.S. economic sanctions.
The charges, filed in the U.S. District Court for the Western District of Washington, accused Binance of “a deliberate and calculated effort to profit from the U.S. market without implementing controls required by U.S. law.”
Prosecutors allege the misconduct began as early as August 2017, continued until at least October 2022, and involved certain Binance officers, directors, employees and agents.
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The article Changpeng Zhao, i.e. Binance, pleads guilty and will pay 4.3 billion dollars in fine comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/changpeng-zhao-cioe-binance-si-dichiara-colpevole-e-paghera-43-miliardi-di-dollari-di-multa/ on Tue, 21 Nov 2023 21:02:16 +0000.