Binance, the world's largest cryptocurrency exchange, and its CEO Changpeng Zhao admitted charges on Tuesday as part of a settlement with the U.S. Department of Justice totaling more than $4 billion. The U.S. Department of Justice stated that Binance admitted to violating the U.S. Bank Secrecy Act (BankSecrecy Act), undocumented remittances, and the International Emergency Economic Powers Act (International Emergency Economic Powers Act). The company agreed to pay a financial settlement of approximately $43.
Binance founder Changpeng Zhao admitted that he violated the Bank Secrecy Act by failing to maintain an effective anti-money laundering program. He will resign as CEO of Binance.
U.S. Attorney General Merrick Garland said: “Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed—and now it is paying one of the largest corporate fines in U.S. history.”
He said using new technologies to engage in illegal activities does not give people the identity of a disruptor, but rather the identity of a criminal.
U.S. Treasury Secretary Yellen criticized Binance's practices, saying: "Binance turned a blind eye to its legal obligations in the pursuit of profits. Its willful failure allowed funds to flow through its platform to terrorists, cybercriminals, and child abusers."
She called these penalties and regulatory measures a historic step for the virtual currency industry.
"Corporate strategies that prioritize profits over compliance are not a path to wealth; it is a path to federal prosecution," said Deputy Attorney General Lisa Monaco.