Binance to Pay $2.7B in Fine to CFTC; CZ Will Pay $150M

  • The U.S. Court ordered Binance to pay $2.7 billion in penalty to the CFTC as part of the settlement of the lawsuit.
  • The court order mandated Changpeng Zhao to pay $150 million as a fine for money laundering.
  • The move came following Zhao’s guilty plea in the $4.3 billion settlement in November.

Recent reports revealed the U.S. court’s move against Binance and its former CEO Changpeng Zhao, in the CFTC lawsuit. The court ordered the company to pay a fine of $2.7 billion and Zhao individually a $150 million to the Commodity Futures Trading Commission (CFTC). This was following a case filed by the CFTC for money laundering.

According to an official announcement by the CFTC, the U.S. District Court for the Northern District of Illinois has approved the CFTC-Binance settlement, asking Binance to “disgorge $1.35 billion of ill-gotten transaction fees” and submit $1.35 as a fine to the commission. The CFTC, further elaborating on the court’s move, cited,

[The court] has approved the previously announced settlement and entered a consent order of permanent injunction, civil monetary penalty, and equitable relief against Changpeng Zhao and his companies Binance Holdings Limited, Binance Holdings (IE) Limited, and Binance (Services) Holdings Limited (together, Binance).

In March 2023, the regulators alleged the company and its founder Zhao of “Willful Evasion of Federal Law and Operating an Illegal Digital Asset Derivatives Exchange.” Last month, Binance and Zhao pleaded guilty to breaching anti-money laundering rules following the long legal tussle with the CFTC. Agreeing to pay $4.3 billion in settlement, Zhao stepped down as the CEO, introducing the new CEO Richard Teng, the former Global Head of Binance’s Regional Markets.

Consequently, reports revealed a potential prison sentence for Zhao that could span up to 10 years. While Zhao intended to return to the UAE to his family, the court filing prohibited him from such a move, highlighting a “flight risk.” Quoting the court ruling, the former Securities and Exchange Commission (SEC) official John Reed Stark posted on X, “The defense claims that Mr. Zhao faces merely a “brief” sentence and has no incentive to flee.” 

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

Comments

Post a Comment

Popular posts from this blog

Inquiry on Binance headquarters and audit left unanswered by new CEO Richard Teng

The new CEO of the Binance exchange, Richard Teng, dodged answering a question about the location of the company’s headquarters and its audit or. His statement was made as part of the Crypto and Digital Assets Summit organized by the Financial Times. During his speech, the new CEO of the exchange once again emphasized Binance’s “shortcomings” with respect to the company’s regulatory requirements. At the same time, Teng avoided questions related to the organization’s activities and structure. You might also like: Richard Teng takes the helm at Binance promising a shift away from outlawed behaviour When about Binance’s global headquarters , and whether the company will be audit ed, or if it plans to apply for a license in the UK, Binance’s new CEO said that he had already answered each of the questions asked “previously.” When asked again about the headquarters , Teng again brushed it off, emphasizing that it was “under consideration.” “...
Read more

Polygon 2.0 Aims to Become the Value Layer of Internet

Image
Thus, Polygon 2.0 will serve as a fundamental layer to create, exchange, as well as program value. The team claims that Polygon 2.0 will help democratize the global economy just as the internet helped in democratizing information access. Polygon 2.0 brings decentralized finance, digital ownership, and innovative coordination methods to the forefront. It fills the gap in creating an Internet that prioritizes users rather than gatekeepers, rent-seekers, or intermediaries. The new and upgraded Polygon version will serve as the blueprint for building the Value Layer. It Features a set of proposed upgrades bringing a major shift in the protocol’s architecture, tokenomics, and governance. The team shall reveal more details regarding Polygon 2.0 in the coming weeks. They will detail the future of the Polygon PoS chain, as well as the utility and the evolution of the MATIC token. Recommended Articles ...
Read more

Australian regulator ASIC to ramp up focus on digital scam

ASIC, Australia’s financial watchdog, has announced a new four-year plan prioritizing consumer protection against digital scams, including cryptocurrency-related frauds. ASIC, the Australian Securities and Investments Commission, has unveiled a new four-year strategy aimed at shielding consumers and businesses from digital scams, including those involving cryptocurrencies. Chair Joe Longo indicated that while ASIC has made strides since outlining its priorities last year, there’s ongoing work. The regulator is adapting to shifts in sustainable finance, the digital economy, and the challenges an aging population poses. You might also like: ASIC releases the top 10 ways to spot a crypto scam Longo also mentioned that ASIC closely monitors how emerging technologies like AI could impact businesses and consumers. Australia has been generally favorable toward digital currencies. The country has both embraced and regulated cryptocurrencies, most notably by exempt...
Read more