Changpeng Zhao, the CEO of cryptocurrency exchange Binance, and the company itself have agreed to pay $4.3 billion to settle a criminal investigation by the U.S. Department of Justice (DOJ). The settlement is one of the largest in the history of the DOJ’s Money Laundering and Asset Recovery Section.
The investigation was focused on Binance’s alleged involvement in money laundering and illicit activities. According to the DOJ, Binance failed to implement sufficient anti-money laundering (AML) measures, allowing criminals to use the platform to launder money and conduct illegal transactions.
As part of the settlements, the exchange will pay $3.4 billion to the Financial Crimes Enforcement Network (FinCEN) and $968 million to the Office of Foreign Assets Control (OFAC). These settlements stem from accusations by both agencies that Binance violated the Bank Secrecy Act and sanctions programs. Binance had previously announced its agreement to pay $4.3 billion in fines and forfeitures to the U.S. Department of Justice for its alleged violations of sanctions laws and failure to maintain a sufficient KYC policy mechanism.
In a statement, CZ expressed his commitment to working closely with regulators and law enforcement agencies to strengthen Binance’s compliance and security measures. He emphasized that the settlement marks a turning point for the company and its dedication to ensuring the highest standards of transparency and compliance.
