Binance Settles Federal Case for Record $4.3 Billion

Binance, a major cryptocurrency platform, agreed to a $4.3 billion settlement in a federal case, marking a historic high in financial enforcement actions. Federal Judge Richard Jones ratified the settlement, which includes a $1.8 million criminal fine and $2.5 million in forfeitures for negligence in due diligence, as reported by Reuters. Prosecutors pointed out that Binance's lack of an effective anti-money laundering (AML) framework allowed the misuse of its services for illicit activities, such as money laundering through mixing services, ransomware, darknet dealings, and other scams.

This penalty, according to the U.S. Department of Justice, is unprecedented for a money services business, reflecting the gravity of Binance's offenses. Officials emphasized the punishment aims to hold Binance accountable and deter similar future criminal activities. The settlement's confirmation came from Judge Richard A. Jones, with the spotlight now turning to Binance's founder, Changpeng "C.Z." Zhao, whose sentencing for money laundering and sanctions violations is pending until April 30. Zhao, currently on a $175 million bond, faces restrictions on his business activities and travel.

As part of the settlement, Binance conceded to the charges, promising to enhance its compliance mechanisms and work closely with the government. This comes after a separate $2.7 billion agreement with the U.S. Commodity Futures Trading Commission (CFTC) for regulatory breaches, including a personal $150 million fine for Zhao.