Binance Founder, Changpeng Zhao Pleads Guilty For Money Laundering Charges

The Founder and now ex-CEO of Binance, Changpeng Zhao, also known as CZ, pleaded guilty to violating anti-money laundering policies and U.S. economic sanctions under a sweeping deal with the United States Department of Justice.

The deal, which will allow Binance to continue operations, also saw CZ step down as CEO. Binance will also pay a $4.3 billion fine.

Besides stepping down as CEO, CZ will pay a $200 million fine as part of the settlement.

He appeared in court on November 21st in Seattle to plead guilty to several charges and faces a maximum sentence of 10 years.

From court documents, D.O.J. charged Binance with money-laundering violations, U.S. sanctions violations, and conspiracy to conduct an unlicensed money-transmitting business.

Binance admitted that it had failed to prevent and report suspicious transactions made by terrorist organizations, including Hamas’ al-Qassam Brigades, the Islamic State, and al Qaeda.

D.O.J. Charges Binance With Massive Money-Laundering Schemes and Sanctions Violations

The US Feds have charged Binance with conducting over $1 billion in transactions with sanctioned countries from Russia to Iran.

“Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed—now it is paying one of the largest corporate penalties in U.S. history,” said U.S. Attorney General Merrick Garland.

The court filing states that Binance allowed transactions over $890 million involving users in Iran, a country for which the U.S. imposed strict economic and financial sanctions.

Binance also allowed trades between U.S. users and counterparts in other sanctioned jurisdictions, including Cuba, Syria, and illegally occupied regions of Ukraine, the indictment says.

“Binance turned a blind eye to its legal obligations in the pursuit of profit. Its willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform,” said U.S. Treasury Secretary Janet Yellen.

“Today’s historic penalties and monitorship to ensure compliance with US law and regulations mark a milestone for the virtual currency industry.”

The indictment alleges that CZ also prioritized Binance’s growth and profits over compliance with U.S. law. He acknowledged that the company operated in what he described as a “grey zone“, but he instructed staff that it was “better to ask for forgiveness than permission”.

On November 21st, CZ took to his X(formerly Twitter) page to give a final note and confirm the appointment of Richard Teng, head of regional markets at Binance, as the new CEO of Binance.

This story will for sure impact the place of binance as the number 1 crypto exchange platform in the world