The US Department of Justice (DOJ) imposed a $4.3 billion fine on the world’s largest cryptocurrency exchange in November 2023 to resolve a multiyear inquiry.
Changpeng Zhao, Binance’s controversial CEO, has announced that he will plead guilty to breaking US anti-money laundering rules and stand down as CEO.
According to Bloomberg, a sentencing letter filed with a federal court in Seattle last week shows that prosecutors want the case’s judge to accept the plea offer.
Prosecutors think the fines are appropriate given Binance’s “intentional” misbehavior, which resulted in “hundreds of millions of dollars in collateral consequences.”
Zhao’s sentencing hearing was recently pushed again to April 30th, according to CNBC.
A former captive and many family members of the victims of Hamas’ October 7th attack on Israel sued the exchange last month, alleging that it provided the terrorist group with a financial channel. The lawsuit alleges that Binance processed multiple transactions for Hamas between 2017 and 2023.
In June 2023, the US Securities and Exchange Commission (SEC) accused Binance and Zhao of selling unregistered securities, deceiving investors about its security protocols, and diverting client funds. The SEC also moved to freeze the assets of Binance, the exchange’s American branch.US.
