Binance Faces $4.3B Fine, U.S. Exit After AML Violations
Binance, the world's largest cryptocurrency exchange, faces significant consequences for violating U.S. anti-money laundering regulations. The company and its founder, Changpeng Zhao, have agreed to a substantial fine and other penalties.
Binance has pleaded guilty to violating U.S. anti-money laundering regulations. The exchange, along with its founder Changpeng Zhao, will pay a $4.3 billion fine, with $3.4 billion going to FinCEN and $968 million to OFAC. This settlement follows an investigation by the U.S. Justice Department.
In a separate development, the U.S. securities regulator SEC has filed a lawsuit against Binance, alleging violations of securities laws. The exact details of these allegations are yet to be revealed, as the search did not provide the name of any U.S. security agency employee involved.
Consequences for Binance and Zhao are severe. Zhao faces a maximum of 18 months in prison, and Binance will withdraw completely from the U.S. market, effectively blocking U.S. citizens from using its services. Zhao has stepped down as CEO and will pay a $50 million penalty.
Richard Teng, currently serving as 'Global Head of Regional Markets' at Binance, will take over as the new CEO.
Binance's settlement with U.S. authorities and the SEC lawsuit mark a significant turning point for the company. With Zhao's departure and Teng's appointment as the new CEO, Binance will navigate these challenges while complying with U.S. regulations and potentially facing further legal action.
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