Binance, the world’s largest cryptocurrency exchange, and its founder, Changpeng Zhao, have pleaded guilty to financial crimes. As part of a plea deal with multiple U.S. federal agencies, including the Department of Justice and the Department of the Treasury, Binance has agreed to pay over $4 billion in fines and forfeit $2.5 billion. Changpeng Zhao, CEO of Binance, will step down and pay a $50 million fine.
The charges against Binance include money laundering, operating an unlicensed money transmitting business, and violations of U.S. sanctions. Binance also failed to prevent and report suspicious transactions with terrorist groups and individuals involved in ransomware attacks and money laundering. As a result, it faces one of the largest corporate penalties in U.S. history, totaling $4.3 billion.
In addition to the financial penalties, Binance has agreed to retain an independent compliance monitor for three years and strengthen its anti-money laundering and sanctions compliance programs. The company will also undergo a “complete exit” from the United States. Failure to comply with the terms of the settlement could result in additional penalties.
Changpeng Zhao expressed his remorse and announced his decision to step down as CEO of Binance. Richard Teng, the Global Head of Regional Markets at Binance, has been named as the new CEO. He expressed humility and honor at taking on the new role.