The U.S. Department of Justice Settles Charges Against Binance for $4.3 Billion
The U.S. Department of Justice has settled charges against crypto exchange giant Binance for $4.3 billion, bringing investigations spanning back to 2018 to a close.
Settlement Confirmed in Live Video Announcement
The DOJ confirmed the settlement in a live video announcement on Tuesday, marking one of the largest enforcement actions ever closed in a crypto-related case.
According to the DOJ, the company pled guilty to willfully floundering the Bank Secrecy Act, among other things. As part of the settlement, Binance must now report suspicious financial activity to federal authorities.
Founder Pleads Guilty and Steps Down
Meanwhile, Binance founder Changpeng Zhao (CZ) has pled guilty to failing to implement a strong anti-money laundering (AML) program on the platform. He entered his plea in person, in a U.S. District court earlier today. As a result, he will personally pay a $50 million fine and has stepped down as the exchange’s CEO.
Following the announcement, the price of BNB fell from $253 at the start of the day to $242. CZ confirmed that he had stepped down on Tuesday through an X post, admitting that he’d “made mistakes, and I must take responsibility.”
New CEO Announced
Binance’s former Global Head of Regional Markets, Richard Teng, will be the firm’s new CEO. In a tweet, CZ expressed his contentment with stepping down, stating, “I can’t see myself being a CEO driving a startup again. I am content being a one-shot (lucky) entrepreneur.”
It is important to note that the source of this information is not available.
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