Changpeng Zhao, chief executive officer, Binance Holdings Ltd., pleaded guilty to anti-money laundering and US sanctions violations. This is expected to take place after a settlement with the US that allows the cryptocurrency exchange to continue operating.
Sources revealed that Binance will pay $4.3 billion in one of the largest corporate agreements in US history. Zhao will pay a $50 million fine under a deal that requires him to step down as CEO. Zhao pleaded guilty Tuesday to violating the Bank Secrecy Act in federal court in Seattle, as per insights from Bloomberg. It is expected that the Justice Department, Treasury Department and the Commodity Futures Trading Commission, will end a years-long investigation into the exchange.
“The crypto market saw a knee-jerk reaction after the news of Binance’s CEO stepping down became public. The overall crypto market reduced below the $1.4 trillion mark with BTC and ETH slipping by 2% each. The tussle between crypto giants like Binance and the US government may have a psychological impact on the crypto community across the globe. The market is expected to remain choppy in the coming weeks,” Shivam Thakral, CEO, BuyUcoin, explained.
Binance is believed to have allowed transactions with Hamas and other terrorist groups on the platform. Experts believe he was charged with three counts, including anti-money laundering, operating an unlicensed money-transmitting business and violating US sanctions. The exchange will pay a criminal fine of $1.8 billion and forfeit $2.5 billion, as per insights from court filings made on Tuesday.
Furthermore, “Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed, now it’s paying one of the largest corporate penalties in U.S. history,” Merrick Garland, Attorney General, concluded.
