Binance Reaches Settlement with the U.S., Paying a Record Fine of $4.3 Billion

The regulatory action by the United States against Binance has finally yielded results. The cryptocurrency trading platform has agreed to pay a fine of $4.3 billion, setting a historic record for the U.S. Treasury.

On the 22nd, the U.S. Department of Justice held a press conference to announce a settlement agreement with Binance. Several senior officials, including the Attorney General and the Secretary of the Treasury, attended the meeting.

Binance is accused of violating anti-money laundering regulations, operating transfer services without a license, and violating U.S. sanctions. Among these, the failure to effectively prevent and report suspicious transactions related to terrorist organizations is a major issue. It is reported that the platform allowed over 1.1 million transactions involving Iranian customers, totaling more than $898 million.

The finance minister criticized Binance for prioritizing profits over legal obligations, completing large transactions without fully verifying customer identities and monitoring trades. The attorney general pointed out that the platform is filled with criminals using cryptocurrencies to transfer illegal funds.

As part of the settlement, Binance will pay a $1.8 billion criminal fine and have $2.5 billion seized. In addition, founder Zhao Changpeng has agreed to resign and pay a $50 million fine, potentially facing up to 10 years in prison. His lawyer stated that the sentencing will be delayed for 6 months.

Binance also needs to hire an independent compliance officer for a term of 3 years. Changpeng Zhao is prohibited from participating in the operation and management of Binance until the officer's term ends. The U.S. Treasury Department will retain the right to review Binance-related records for 5 years.

It is worth noting that Binance will completely withdraw from the US market, but its US subsidiary will continue to operate in the US. If Binance fails to fulfill its related obligations, it may face an additional fine of $150 million.

Richard Teng will take over as CEO of Binance. He has over 30 years of experience in financial services and regulation, having worked at several well-known financial institutions. Zhao Changpeng stated that he will take a break for a while and may engage in some passive investments later, particularly in areas such as blockchain, Web3, and DeFi.

Newly appointed CEO Teng emphasized the commitment to maintaining user confidence in the company, collaborating with regulatory agencies, and promoting the development of Web3.

It is worth mentioning that the allegations do not involve Binance misappropriating user funds or manipulating the market. Both Zhao Changpeng and company executives emphasized this point, stating that user funds remain safe.

This settlement marks an important step for Binance in terms of compliance, but it also faces significant challenges and transformation. In the future, it will be worth watching how the company continues to develop under a strict regulatory environment.