Binance CEO Changpeng Zhao Admits Guilt in Violating U.S. Anti-Money Laundering Laws, Settles for USD 4.3 Billion
Binance CEO Changpeng Zhao resigned and admitted guilt for violating U.S. anti-money laundering laws, settling a years-long probe into the world’s largest crypto exchange. The $4.3 billion settlement includes Zhao personally paying $50 million, making it one of the largest corporate penalties in U.S. history. The charges relate to Binance breaking U.S. anti-money laundering and sanctions laws, failing to report over 100,000 suspicious transactions involving organizations described as terrorist groups like Hamas, al Qaeda, and ISIS. The exchange also neglected to report transactions with websites selling child sexual abuse materials and was a major recipient of ransomware proceeds. Zhao faces a recommended 18-month prison sentence, and Binance will pay $1.81 billion within 15 months and an additional $2.51 billion forfeiture as part of the settlement. Richard Teng, a longtime Binance executive, will take over as CEO. Zhao retains his stake in Binance, raising questions about his continued influence on the company.
