NEW YORK, United States: A U.S. judge on Friday accepted Binance’s guilty plea and fine of more than $4.3 billion for violating federal anti-money laundering laws and sanctioning internal control failures at the world’s largest cryptocurrency exchange.
U.S. District Judge Richard Jones in Seattle issued the $1.81 billion criminal judgment about an hour after the government proposed changes to Binance founder Chang Peng Cha’s bail, which Cha’s lawyers opposed. It approved the request, which includes $2.51 billion in fines and forfeitures.
Binance’s request, announced in November, alleges that the exchange failed to report more than 100,000 suspicious transactions related to designated terrorist organizations, including Hamas, Al-Qaeda and the Islamic State in Iraq and Syria (ISIS). A multi-year investigation has been resolved.
Prosecutors said the Binance platform also facilitated the sale of child sexual abuse material and was one of the largest recipients of ransomware revenue.
In a statement on Friday, Binance said it accepted responsibility, strengthened its anti-money laundering and know-your-customer protocols, and made “significant progress” toward the changes required by the fee settlement agreement.
Mr. Zhao was released on $175 million bail in the United States in November after pleading guilty to money laundering charges.
His request included a $50 million fine and also asked him to resign as CEO of Binance.
Prosecutors said in a court filing that the proposed change reflects Jones’ order that Zhao remain on U.S. soil under the supervision of court officials until sentencing on April 30. He said it would be done.
The terms include giving Mr. Zhao three days’ notice of all travel plans in advance, surrendering his passport and maintaining his current residence unless changes are approved.
Pretrial officers also recommended that Mr. Zhao be placed on community supervision.
Prosecutors said they had discussed the changes several times with Mr. Zhao’s lawyer, but “opposed the motion as written.”
A lawyer for Mr. Zhao did not respond to a request for comment.
Cases include United States v. Binance Holdings, Inc., United States District Court for the Western District of Washington, No. 23-cr-00178, and United States v. Z.
