- Binance got a big fine of $4. 3 billion because they didn’t follow the rules, and it’s not clear what will happen to the founder.
- Zhao’s punishment delayed and he can’t travel much, as Binance promises to follow the rules.
- Binance got a big fine. The founder is in legal trouble.
Cryptocurrency exchange Binance admitted to breaking the law and will pay $4. 3 billion in fines. Richard Jones, the judge in charge of the case, agreed with the guilty plea on Friday. This is the biggest settlement ever in federal financial prosecutions.
Federal prosecutors said that the $4. 3 billion fine is the biggest ever given to a money services business in the U. S Department of Justice is the part of the government that is responsible for making sure that laws are followed and people are treated fairly. This huge amount of money shows how serious Binance’s illegal behavior is, including not having a good system to stop money laundering. The exchange didn’t have strict rules, so people were able to do illegal things like laundering money, buying ransomware, and selling things on the darknet.
Binance did not follow the rules
Court papers say that Binance didn’t do a good job checking people before they used the platform for bad things. This includes hiding where cryptocurrency comes from and who owns it, using money from ransomware attacks, and helping to move money from illegal online transactions.
Binance has settled its legal problems, but we don’t know what will happen to its founder, Changpeng “C. Z” Zhao, in the future. Zhao is accused by the U. S of breaking money rules and laundering $175 million. He is released on a bond while waiting for trial. The Department of Justice. The government group that makes sure people follow the law. His punishment, which was supposed to happen on April 30, has been delayed. For now, Zhao can’t help run or manage any businesses connected to Binance. The prosecutors want him to give up his Canadian passport and tell them before he travels anywhere.
Working together and following rules
As part of the agreement, Binance will work with the government, improve its compliance program, and hire someone to make sure it follows the rules. These actions are meant to make sure that rules are followed and to stop bad behavior in the future at the exchange.
Binance has more legal troubles than just this big case. In December, the exchange made an agreement with the U. S The Commodity Futures Trading Commission (CFTC) has agreed to pay $2. 7 In addition, Zhao had to pay $150 million after being charged with breaking the Commodity Exchange Act and other CFTC rules.
Binance’s case being resolved is a big step in federal financial prosecutions. It shows that the government is serious about making sure businesses are responsible for any illegal behavior. As cryptocurrency changes, there will be more rules and penalties, so it’s important for the industry to follow the rules carefully.
Warning: This is not advice for buying or selling stocks.
