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Binance agrees to pay $4.3 billion—one of the largest corporate penalties in U.S. history—to settle anti-money laundering, sanctions violations. At the same time, CEO Changpeng Zhao has stepped down after pleaded guilty to failing to maintain an effective anti-money laundering program and agreeing to pay a separate $50 million fine.
The charges state that Binance focused on profits over legal compliance, serving U.S. customers without proper controls. This allowed funds tied to terrorism, hacking, and other crimes to flow through Binance undetected.
"Zhao knew that U.S. users were essential to Binance’s growth and were a significant source of revenue and knew that an effective AML program would include KYC protocols that would mean that some customers would choose not to use Binance," the DOJ said in a press release. "Zhao told employees it was “better to ask for forgiveness than permission,” and prioritized Binance’s growth over compliance with U.S. law."
Attorney General Merrick Garland said during a Tuesday afternoon press conference that chats obtained during the investigation show that compliance officers that the company
Binance also failed to stop over $898 million in illegal trades between U.S. users and those in sanctioned countries like Iran. As part of the plea deal, Binance forfeited over $2.5 billion and paid a $1.8 billion criminal fine. Zhao's plea relates to the lack of anti-money laundering controls.
The resolution aims to send a message that crypto exchanges serving U.S. customers must follow the law. Using new technology does not excuse criminal conduct. When profits are prioritized over compliance, there will be consequences in the U.S. legal system.
This is a developing story and will be updated.