Binance Hit With $4.3 Billion Fine, CEO CZ Pleads Guilty to Charges!
Elena R22 Nov 20231 min read
Binance, the world’s leading cryptocurrency exchange, finds itself entangled in a legal storm as it faces three serious criminal charges. Adding to the shock, (CZ), the CEO of the company, has resigned and pleaded guilty in a Seattle federal court in connection with the charges.
Woah… way too much to take in, right? Read on for more details.
Binance’s Legal Woes
In June, the Securities and Exchange Commission (SEC) pointed fingers at Binance, accusing them and Zhao of illegal US operations and investor fraud. The SEC tried freezing Binance’s assets, citing “violative conduct” and a disregard for US laws.
Binance sidestepped the freeze by blocking access to funds and more.
Now, on November 22, a Seattle court declared Binance and CZ guilty on three charges: running an unlicensed money-transmitting business, violating the International Emergency Economic Powers Act, and conspiracy.
CZ Strikes a Deal
In a strategic move, CEO Changpeng Zhao admitted to breaking money laundering rules, agreeing to a $50 million fine. The deal, with the Justice Department, aims to keep the company going. Simultaneously, Zhao steps down per the settlement with the Treasury Department and the Commodity Futures Trading Commission.
Despite a hefty $4.3 billion fine commitment, Binance plans to keep going globally. However, US regulators will closely monitor the company.
