United States v. Binance Holdings Limited, d/b/a Binance.com (2024)

FAQs

Did the CEO of Binance plead guilty? ›

Changpeng Zhao, the former chief executive of Binance, was sentenced on Tuesday to four months in prison after pleading guilty to violating US money-laundering laws at the world's largest cryptocurrency exchange.

Binance agreed to pay $4.3 billion in November to settle with the Department of Justice and the Commodity Futures Trading Commission over illicit finance breaches.

Binance agreed to pay more than $4 billion in fines and other penalties as part of a coordinated settlement with the federal government last fall. The company admitted to engaging in anti-money laundering activities, unlicensed money transmitting and sanctions violations.

In November, Zhao—better known as CZ—pleaded guilty to willfully violating anti-money-laundering rules that enabled hundreds of millions of dollars in transactions involving US-sanctioned entities, including Iran and Cuba, to pass through the Binance platform.

It has been alleged that Binance could be used as a funding mechanism for terrorist groups. In November 2023, the company pleaded guilty in a U.S. federal court to money laundering, unlicensed money transmitting, and sanctions violations.

In the June lawsuit, the SEC filed 13 charges against Binance, accusing the exchange of mishandling customer funds and offering registered securities, alleging that the company and founder Changpeng Zhao had engaged in an “extensive web of deception.”

In general, Binance, like most cryptocurrency exchanges, does not offer refunds for losses incurred while trading on their platform. Trading cryptocurrencies is a high-risk activity, and users are expected to be aware of the potential risks and losses associated with trading.

As part of the plea agreement, Binance has agreed to forfeit $2,510,650,588 and to pay a criminal fine of $1,805,475,575 for a total financial penalty of $4,316,126,163.

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Binance is often considered one of the safest exchanges in the world if you consider the level of security.

In which countries is Binance banned? ›

4. Binance. Perhaps the most high-profile of crypto trading hacks, cybercriminals targeted the Binance exchange in October 2022, eventually taking $570 million.

SEATTLE, April 30 (Reuters) - Changpeng Zhao, the former chief executive of Binance, was sentenced on Tuesday to four months in prison after pleading guilty to violating U.S. laws against money laundering at the world's largest cryptocurrency exchange.

Changpeng Zhao, the founder of the world's leading cryptocurrency exchange, was sentenced on Tuesday to four months in prison after pleading guilty last year to charges that he failed to maintain an effective anti-money laundering program.

Binance founder Changpeng Zhao sentenced to 4 months for allowing money laundering. SEATTLE (AP) — Binance founder Changpeng Zhao was sentenced Tuesday to four months in prison for allowing rampant money laundering on the world's largest cryptocurrency exchange.

Beyond the Courtroom: The Wider Regulatory Scene

For instance, the U.S. Commodities Futures Trading Commission (CFTC) and other U.S. agencies reached a $4.3 billion settlement with Binance last November to resolve the anti-money laundering cases brought against the company.

A federal judge approved a plea deal by Binance on Friday, requiring the beleaguered cryptocurrency exchange to pay more than $4.3 billion in fines and restitution, after the company and its founder Changpeng Zhao pleaded guilty late last year to breaking anti-money laundering laws and violating sanctions.

Zhao has been hit with a partial knock to his overall fortune — he was forced to pay a $50 million fine, in addition to the $4.3 billion in fines and forfeiture Binance was ordered to pay for violating the U.S. Bank Secrecy Act and sanctions on Iran.

Binance agreed to pay more than $4 billion in fines and other penalties as part of a coordinated settlement with the federal government last fall. The company admitted to engaging in anti-money laundering activities, unlicensed money transmitting and sanctions violations.