Binance Pleads Guilty to Charges
Binance has admitted to violating US money laundering laws, with the Department of the Treasury identifying several criminal failings of the crypto exchange. The charges stem from Binance’s failure to report illicit transactions, resulting in a $4.3 billion settlement.
Unreported Terrorism Transactions
The United States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) took legal action against Binance and its CEO, Changpeng Zhao, resulting in Zhao’s resignation. Secretary of the Treasury Janet L. Yellen accused Binance of allowing illicit transactions, including transfers to terrorist groups like ISIS and Al Qaeda, and failing to maintain a robust anti-money laundering program, among other violations.
Transactions on Child Porn Linked to Binance Exchange
Among the charges, the FinCEN highlighted Binance’s failure to report transactions related to child pornography and sexual abuse materials. Additionally, Binance neglected to disclose ransomware, fraud-related services, illegal narcotics, large-scale hacks, and scams.
Hot Take: Warning to Digital Asset Industry
Janet L. Yellen emphasized the significance of the enforcement actions against Binance, underscoring the importance of compliance in the digital asset industry. Yellen warned institutions benefiting from the US financial system to adhere to the country’s rules to ensure the public’s safety from criminal activities and terror threats.
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