Binance Settles with CFTC
A US court settled the case between Binance and the Commodities Futures Trading Commission (CFTC) for $2.7 billion, and a $150 million fine for Binance co-founder Changpeng Zhao (CZ).
The CFTC said in a press release that Binance and CZ “chose to ignore” US laws and solicited customers in the US at Zhao’s direction, and the world’s largest crypto exchange was penalized for over $1.35 billion and ordered to “disgorge another $1.35 billion of ill-gotten transaction fees.”
Binance CCO Also In The Mix
The former Chief Compliance Officer (CFO) of the exchange, Samuel Lim, was ordered to pay $1.5 million as a civil monetary penalty for “aiding and abetting Binance’s violations and engaging in activities outside the US to evade or attempt to evade US law willfully.”
The court ordered the establishment of a corporate governance structure to comply with US laws, which includes a board of independent directors, and compliance and audit committees.
DoJ Settlement
The crypto exchange agreed to a $4.3 billion agreement with the Department of Justice to resolve criminal charges of money laundering and sanctions violations. CEO Zhao was fined $50 million and agreed to step down for three years in the settlement.
Hot Take
When investing in crypto, remember that it’s high-risk – you may lose all your money. It’s a good practice to be cautious and not expect protection if things go wrong.
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