District Judge Richard Jones on Friday approved Binance’s admission of guilt and imposed a hefty penalty exceeding $4.3 billion for violations of federal anti-money laundering and sanctions laws due to internal control lapses at the renowned cryptocurrency exchange.
U.S. District Judge Richard Jones in Seattle greenlit the plea deal, comprising a $1.81 billion criminal fine and $2.51 billion in forfeiture, shortly after the government suggested alterations to Binance founder Changpeng Zhao’s bond, which prompted objections from Zhao’s legal team.
Binance’s plea, disclosed in November, concluded a prolonged investigation that uncovered the exchange’s failure to report over 100,000 suspicious transactions involving designated terrorist organizations such as Hamas, al Qaeda, and ISIS.
Prosecutors further highlighted Binance’s platform support for the sale of illicit materials related to child sexual abuse and its status as one of the major recipients of ransomware proceeds.
In response, Binance issued a statement expressing accountability, acknowledging necessary upgrades to its anti-money laundering measures and “know-your-customer” protocols, and highlighting substantial progress toward fulfilling the obligations outlined in its plea agreement.
Meanwhile, Zhao, who has been out on a $175 million bond since November after pleading guilty to money laundering charges, was required to step down as Binance’s CEO and pay a $50 million fine as part of his plea deal.
The proposed amendments to Zhao’s bond conditions, aimed at ensuring compliance with Judge Jones’ directives until his sentencing scheduled for April 30, include requirements for Zhao to remain within the continental United States, under court officer supervision, and to provide prior notice of any travel plans.
Additionally, Zhao is expected to surrender his passports, maintain his current residence unless authorized otherwise, and may undergo location monitoring as recommended by pretrial services officers.
While prosecutors stated that they had engaged Zhao’s legal team in discussions regarding these changes on multiple occasions, Zhao’s lawyers have yet to offer a response to the proposed alterations.
