Binance Will Exit the US Paying over $7.1 Billion in Settlements

<p>Binance has agreed to enter into a historic corporate settlement by paying over $4.3 billion to settle charges brought by the US Department of Justice (DoJ). The crypto exchange will also remit an additional $2.85 billion to settle with the US commodities regulator.
</p><h1>A Historic Corporate Settlement in the US
</h1><p>Officially confirmed yesterday (Tuesday), $3.8 billion from the settlement with the DoJ will go to the Financial Crimes Enforcement Network, while the Office of Foreign Asset Control will receive $968 million.
</p><p>In its separate settlement with the Commodity Futures Trading Commission (CFTC), Binance Holdings will return $1.35 billion in “ill-gotten funds” and another $1.35 billion in civil penalties. Further, Binance's former CEO, Changpeng Zhao, agreed to pay a $150 million civil monetary penalty to the agency, while the exchange’s former Chief Compliance Officer, Samuel Lim, will pay an additional $1.5 million.
</p><p>The DoJ <a href="https://www.financemagnates.com/executives/binance-ceo-changpeng-zhao-to-step-down-in-4b-doj-settlement-report/">unsealed the charges against Binance</a> yesterday, and the exchange simultaneously pled guilty to violating US anti-money laundering (AML) and sanctions laws. Zhao&nbsp;pled guilty to violating anti-money laundering rules and agreed to step down.
</p><h2>Profit over Compliance
</h2><p>“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,” Treasury Secretary Janet Yellen said.
</p><p>Attorney General Merrick Garland commented along the same lines: “From the very beginning, Zhao and other <a href="https://www.financemagnates.com/tag/binance/">Binance </a>executives engaged in a deliberate and calculated effort to profit from the US market without implementing the controls required by US law.”
</p><p>Apart from the monetary settlement, Binance agreed to exit the US markets completely and will “abide by a series of robust sanctions compliance obligations.” Further, Binance will be subjected to a five-year monitorship, granting US Treasury access to the exchange’s books, records, and systems.&nbsp;Failure to comply could “expose Binance to substantial additional penalties, including a $150 million suspended penalty.”</p><blockquote><p lang="en" dir="ltr">Law enforcement and national security officials need&nbsp;additional authorities and resources to pursue money laundering, sanctions evasion, &amp; criminal activity&nbsp;facilitated through crypto. I’ll keep working to pass bipartisan legislation to address this serious and dangerous problem.</p>— Elizabeth Warren (@SenWarren) <a href="https://twitter.com/SenWarren/status/1727075456082756090?ref_src=twsrc%5Etfw">November 21, 2023</a></blockquote> <p>Meanwhile, the array of settlements did not include the <a href="https://www.financemagnates.com/cryptocurrency/sec-charges-binance-ceo-over-illegal-exchanges-commingling-of-client-fund/">charges brought by the US securities regulator against Binance and Zhao</a>. This means the Securities and Exchange Commission (SEC) will continue to fight the exchange and its former CEO in court unless a separate settlement is reached.</p><blockquote><p lang="en" dir="ltr">Since the founding of Coinbase back in 2012 we have taken a long-term view. I knew we needed to embrace compliance to become a generational company that stood the test of time. We got the licenses, hired the compliance and legal teams, and made it clear our brand was about trust…</p>— Brian Armstrong