US authorities held a press conference to announce what they said was a historic agreement in which crypto exchange Binance will pay a $4.3 billion fine. After pleading guilty to a criminal offense
“At a press conference on November 21, Attorney General Merrick Garland announcethat CZ filed its own complaint in United States federal court; Binance and CZ paid a $4.3 billion fine that will cover “Implementation of civil law enforcement” by government agencies Including the US Department of Treasury. and the Commodity Futures Trading Commission (CFTC).
Binance agrees to plead guilty to violating the Bank Secrecy Act. by failing to apply for a license to be a money sender or money transfer service and intentionally violated the International Emergency Economic Powers Act. Attorney General Merrick B. Garland said CEO Changpeng Zhao also pleaded guilty to willfully violating the Bank Secrecy Act and resigned from his position.
“From the beginning, Zhao and other Binance executives engaged in a deliberate effort to profit from the US market. without complying with U.S. law,” Garland said, adding that Binance has allowed transactions between American users and sanctioned entities.
Specifically, Garland said Binance facilitated $900 million worth of transactions between US and Iranian users, while also supporting transactions between US users. and agencies in Syria and in the regions of Ukraine occupied by Russia, including Crimea, Donetsk and Luhansk.
“Binance prioritizes profits over the safety of Americans.”
“This platform is ready to support criminals all over the world. to move stolen funds and other criminal operations,” he continued. “Binance values profits more than the safety of Americans.”
“Binance is doing more than just not complying with federal law – it is pretending to be in compliance,” he added.
Rostin Behnam, chairman of the Commodity Futures Trading Commission, said Zhao must pay the fine. 150 million dollarsto CTFC and Samuel Lim, former Chief Compliance Officer of Binance,agree toPaid a civil penalty of $1.5 million.
“Using new technology to break the law doesn’t make you a disruptor, it makes you a criminal,” Garland said. “The Justice Department has zero tolerance for crimes that threaten our economic institutions. and undermine public trust in the fairness of those institutions.”
Deputy Attorney General Lisa Monaco saidThis case should serve as a lesson to the industry about ignoring the law. “It is not the path to riches. But it is a path to federal prosecution.”
“Crypto assets may be advertised as borderless. But the Department of Justice will enforce U.S. law throughout the crypto market, even in its darkest corners.”
US Treasury Secretary Janet Yellen said FinCEN, OFAC and the IRS Criminal Investigation Division have been investigating Binance for three years. and enforcement actions taken by the U.S. government. Taking action against the crypto exchange “does not mean an end to its activities.” cryptocurrency But it must comply with U.S. law,” Yellen added.
Investigations and Prosecutions
In May, the DOJ began investigating Binance over whether it allowed Russian users to circumvent sanctions. and in October US lawmakers also asked the DOJ to “assess the extent to which Binance and Tether provide material support and resources to support terrorism” in the Israel-Hamas war.
In March, the CFTC sued Binance for It “deliberately circumvented federal law” and “operated an illegal digital asset derivatives exchange,” and accused Binance officials of knowing users were engaging in illegal activities. but neglected
Executive resigns
In the midst of a turbulent year A number of Binance’s top managers have resigned. And the company laid off many employees in May and July.
Top departures include general counsel Han Ng, chief strategy officer Patrick Hillmann and senior vice president of compliance Steven Christie, who resigned in July. And before that, Matthew Price, a former IRS agent hired by Binance to manage global investigations and intelligence, also resigned, while Leon Foong, head of Asia Pacific markets, left in August.
In September, Binance.US Chairman and CEO Brian Shroder resigned, Binance.US reportedly cut its workforce by a third, and Binance also lost global product head Mayur Kamat and Binance UK head Jonathan Farnell. Head of Eastern Europe, Turkey, Australia and New Zealand. Gleb Kostarev and General Manager of the CIS region Vladimir Smerkis.
Binance will come back stronger than ever.
Binance said in an emailed statement: Confident that the company will be able to become stronger while placing “Foundation for the next 50 years”
“By improving compliance and governance that upholds our commitments, We can share our vision for the exciting future of Binance and the future of the crypto industry.”
“Although Binance is not perfect, But it has been committed to protecting users since its early days as a small startup. and has made significant efforts to invest in safety and compliance.”
“We are aware that Transparency is essential to rebuilding industry trust along with regulatory compliance. amid challenging market conditions and industry mismanagement.”
refer : theblock.co