blockworks.co
The Department of Justice unsealed its indictment against Binance on Tuesday.
The indictment, originally filed on Nov. 14, was filed in the Western district of Washington.
The US accused Binance and Binance CEO Changpeng Zhao of violating the Bank Secrecy Act, alleging that the violations go back as far as 2017. The indictment was unsealed ahead of an expected settlement announcement to be led by the US Department of Justice.
A press conference is scheduled for 3 pm ET.
The world’s largest crypto exchange also failed to “maintain an effective” anti-money laundering program and knowingly violated economic sanctions.
The indictment names both Binance and Zhao, and also alludes to “Individuals 1 and 2,” though it does not detail who the individuals are.
“The purpose of the conspiracy was to allow Binance to operate as a virtual currency exchange and gain market share and profit as quickly as possible,” the DOJ alleges. “Defendants chose not to comply with US legal and regulatory requirements because it determined that doing so would limit its ability to attract and maintain US users.”
The defendants then knowingly “concealed Binance’s avoidance and noncompliance.”
On Monday, Blockworks reported that the DOJ was seeking to let Binance maintain its operations, therefore preventing another FTX-like collapse which would shake the crypto world.
The Wall Street Journal reported Tuesday that Zhao plans to step down as CEO and will plead guilty to anti-money laundering violations.
The Justice Department, alongside the CFTC and the Treasury Department, will host a press conference Tuesday afternoon to discuss “significant” crypto enforcement actions.