Breaking News: US Judge approves Binance’s $4.3B fine in plea deal

Binance Holdings Ltd., one of the world’s largest crypto exchanges, finds itself at the center of a landmark legal settlement in the United States. Recently, a federal judge has approved a plea deal that imposes a staggering $4.3 billion payment on Binance, marking one of the largest criminal penalties ever levied in the U.S. crypto industry. 

This decision underscores the intensifying scrutiny and regulatory oversight facing crypto platforms, particularly those operating on a global scale. The plea deal stems from charges brought against the crypto exchange and its CEO, Changpeng “CZ” Zhao, by U.S. authorities.

Binance faces the same fate as Changpeng Zhao

According to recent reports, Binance Holdings Ltd. will pay $4.3 billion after a judge granted a plea deal that imposes one of the greatest criminal penalties in US history on the world’s largest crypto exchange.

“This really is a case where the ethics of the company were compromised by greed,” US District Judge Richard Jones said during a sentencing hearing in Seattle on Friday.

Binance and its founder, Changpeng Zhao, pled guilty to anti-money laundering and sanctions charges late last year, bringing an end to prosecutors’ and authorities’ lengthy probe. The crypto exchange acknowledged allowing transactions with Hamas and other terrorist groups on its exchange.

As part of the agreement, an outside firm will monitor the company’s compliance for up to five years. The monitor has not yet been appointed. Bloomberg previously reported that New York-based legal firm Sullivan & Cromwell was prepared to take on the coveted position.

The Binance brand has long been a pillar of strength in the digital asset space. However, that trust and standing took a significant knock toward the end of 2023. The exchange would face several federal accusations. As a result, the exchange would face a $4.3 billion resolution, and its long-time CEO would step down.

Furthermore, the approval acknowledges Binance’s role in the Federal infractions. In contrast, the resolution was part of a coordinated effort by numerous US federal departments. Among them were the Office of Foreign Assets Control (OFAC) and the US Commodity Futures Trading Commission (CFTC).

The case made against Binance

The large plea deal made news last year, with Binance admitting to money laundering and sanction violations. Furthermore, the US Department of Justice Press Release reported that the firm’s former CEO, Changpeng Zhao, pleaded guilty to federal charges, which resulted in his departure.

In a brief, prosecutors urged the judge to approve the arrangement, claiming that Binance had left the financial system open to “those who seek to exploit our system for their own gain.”

In sum, given the nature and seriousness of Binance’s misconduct — it was intentional and led by senior executives, with hundreds of millions of dollars of collateral consequences. Prosecutors

Binance’s Deputy General Counsel, Josh Eaton, told the judge that the company “accepts full responsibility for its past and for the reasons we’re sitting here today […] We’re also proud of the compliance enhancements” made over the last few years, Eaton stated.

Jones stated that the crypto exchange was aware that it was subject to US laws, but “despite this knowledge, the defendant made calculated decisions not to follow US laws.” He stated that the penalty is intended to deter future action by Binance and similar organizations while protecting customers.

Zhao’s sentencing was postponed until April, and he is anticipated to serve no more than 18 months in prison despite the fact that he might have faced up to a decade. As part of the guilty agreement, he relinquished his position as CEO of Binance and agreed to pay a $50 million fine.