Department of Justice Reaches $4.3 Billion Settlement with Binance; CZ to Resign as Part of Agreement

Binance Pays $4.3 Billion to Settle with DOJ

According to the DOJ press briefing on cryptocurrency enforcement, Binance, the world’s largest crypto exchange by trading volume, consented to a settlement agreement to pay $4.3 billion to the U.S. law enforcement authority. The investigation revealed that Binance violated anti-money laundering (AML) and sanctions regulations.

Multiple High-Profile Figures in Press Conference

During the press conference on the landmark DOJ settlement, several top officials, including Attorney General Garland, Secretary of the Treasury Yellen, Deputy Attorney General Monaco, and CFTC Chairman Behnam, were present to disclose the details.

Outcomes of the Ongoing Investigation

As part of the settlement, Binance Chief Executive CZ intends to resign and has admitted to breaching U.S. criminal anti-money laundering laws. Binance agreed to pay a total financial penalty of $4.316 billion and to appoint an independent compliance monitor for three years to enhance its anti-money laundering (AML) and sanctions compliance programs.

Binance’s Fraudulent Acts Lead to Reduced Penalty

The DOJ detailed that Binance’s failure to voluntarily disclose its misconduct and its delayed cooperation with the investigation resulted in a 20% reduced penalty. CZ admitted to serving U.S. users without proper registration and prioritizing the company’s growth over legal compliance.

CZ’s Guilt Admitted

CZ himself admitted to BSA violations that led to millions of dollars in civil penalties and has publicly announced his passing of leadership to the former Global Head of Regional Markets, Richard Teng.

Hot Take: DOJ Announces Landmark Settlement with Binance

The $4.3 billion settlement involving Binance, the world’s largest crypto exchange, marks a significant development in cryptocurrency enforcement, signaling that large corporate penalties are being imposed for violations of U.S. laws and regulations. The individual guilty plea by Binance’s Chief Executive reinforces the case for compliance with anti-money laundering (AML) and sanctions regulations.