Binance is charged with three criminal counts by the US Department of Justice, including conspiracy, unlicensed money transmission and sanctions violations, as CEO Changpeng Zhao is set to plead guilty.
Binance, the world’s largest cryptocurrency exchange, has been hit with three major charges by the US government. These charges include conspiracy, operating a money transfer business without a license, and violating the Emergency Economic Powers Act International.
Today, Binance CEO Changpeng Zhao agreed to plead guilty to anti-money laundering charges in federal court in Seattle, according to multiple sources. Zhao currently resides in the United Arab Emirates, a country that does not have an extradition treaty with the United States. However, with Zhao likely to be present in Seattle, there is speculation as to whether he will serve any prison time.
The charges against Binance have been unsealed in federal court in Washington state. They describe a series of alleged violations that have brought intense scrutiny to the cryptocurrency exchange. The first charge, conspiracy, suggests a deliberate effort by Binance to circumvent US regulations.
The second charge involves operating an unlicensed money transmission business, raising questions about the legality of Binance’s financial transactions. The third charge, which violates the International Emergency Economic Powers Act, indicates possible violations of US sanctions and international financial laws.
A considerable fine for Binance
In response to these charges, Zhao agreed to resign as part of the settlement, which also includes a total fine of $4.3 billion paid by Binance. Prosecutors reported that Binance has acknowledged that an appropriate criminal fine for its violations is approximately $1.81 billion. This fine is part of the legal agreement and the exchange will pay this amount within 15 months of his sentencing.
In addition to this, the exchange has accepted a forfeiture order worth $2.51 billion. This confiscation order represents a legal action in which Binance will hand over assets obtained from the alleged criminal activities, totaling the specified amount of $4.3 billion. Together, these financial sanctions form a substantial part of the settlement and underline the seriousness of the charges against Binance.
More details will be discussed later today at the Department of Justice press conference. This fine represents one of the largest in this type of case, which highlights the seriousness of the accusations against the company.
When the news broke today, Binance’s BNB token has plummeted by 5%. The resolution of this case is expected to have far-reaching implications for the cryptocurrency industry as governments around the world increase their scrutiny of digital financial transactions.
