Binance, one of the world’s largest cryptocurrency exchanges, has reached a historic $4 billion settlement with various United States regulatory agencies, News About Nigeria reports.
The settlement comes as a resolution to yearslong investigations led by the Department of Justice (DOJ) into anti-money laundering violations and sanctions breaches by the exchange founded by Changpeng “CZ” Zhao.
As part of the agreement, Zhao, who served as the CEO of Binance, has stepped down from his role. In a statement posted on the platform formerly known as Twitter, Zhao acknowledged his mistakes, stating, “I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.”
Binance, in a press release, admitted to lacking appropriate compliance controls during its initial launch, conceding that it should have adapted to its rapid growth. However, the company affirmed that Zhao’s departure does not equate to a complete separation, as he will remain the majority shareholder and serve as a resource for consultation on historical aspects of the business.
The settlement, announced in a federal court in Seattle, involves charges from the DOJ, Commodities Futures Trading Commission (CFTC), and the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC). The penalties include a $3.4 billion fine to FinCEN, $968 million to OFAC, and stringent compliance requirements monitored over a five-year period.
Treasury Secretary Janet Yellen, during a press conference, emphasized the unprecedented action taken to hold Binance accountable, accusing the exchange of allowing funds to flow to terrorists, cybercriminals, and child abusers. The settlement marks one of the largest corporate penalties in U.S. history, leading to CZ’s resignation and ushering in a new era for the cryptocurrency industry.
