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In a settlement granted by a US judge on Friday, Binance Holdings Ltd. (BHL), the largest cryptocurrency exchange in the world, was sentenced to pay $4.3 billion for breaking anti-money laundering and sanctions laws.
A plea deal between federal prosecutors and Binance was authorized by US District Judge Richard Jones in Washington state. The terms of the agreement required the firm to forfeit $2.5 billion and pay a $1.8 billion fine.
“Binance profited from the US financial system without playing by its rules and, as a result, criminals used the exchange to move hundreds of millions of dollars of stolen funds and illicit proceeds,” the government said in its sentencing memorandum.
Additionally, it said that the fine was "commensurate with the severity of Binance's criminal conduct" and that it was the biggest fine ever levied against a money services company.
In November, a settlement was struck wherein Changpeng Zhao, the CEO of Binance, admitted to breaking US anti-money laundering regulations and consented to resign from his role.
When Binance was founded in 2017 and gained a large portion of the cryptocurrency trading market, Zhao became a billionaire.
Since the collapse of the cryptocurrency markets and regulators started looking into the legitimacy of Binance's operations, the company, which operates cryptocurrency exchanges and offers other services globally, has suffered greatly.
In November, a settlement was struck wherein Changpeng Zhao, the CEO of Binance, admitted to breaking US anti-money laundering regulations and consented to resign from his role.
When Binance was founded in 2017 and gained a large portion of the cryptocurrency trading market, Zhao became a billionaire.
Since the collapse of the cryptocurrency markets and regulators started looking into the legitimacy of Binance's operations, the company, which operates cryptocurrency exchanges and offers other services globally, has suffered greatly.
Although Zhao shifted Binance's operations to other countries after Beijing clamped down on the cryptocurrency industry, Binance was started in China.
With a variety of sophisticated products and celebrity endorsements, the unstable industry took off in 2021 and reached a valuation of more than $3 trillion in 2022.
However, a string of scandals, such as the FTX exchange's collapse and the criminal prosecution of its executives, caused investors to withdraw their funds and the public's faith to crumble.
With a variety of sophisticated products and celebrity endorsements, the unstable industry took off in 2021 and reached a valuation of more than $3 trillion in 2022.
However, a string of scandals, such as the FTX exchange's collapse and the criminal prosecution of its executives, caused investors to withdraw their funds and the public's faith to crumble.
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