The largest cryptocurrency exchange in the world, Binance Holdings Ltd., will have to pay $4.3 billion after a judge accepted a plea agreement that imposes one of the highest criminal penalties in US history.
During a sentencing hearing in Seattle on Friday, US District Judge Richard Jones stated, “This is a case where the ethics of the company were compromised by greed.”
Binance and its creator, Changpeng Zhao, entered a guilty plea to anti-money laundering and sanctions charges towards the end of the previous year, ending an extended probe by regulators and prosecutors. Binance acknowledged that it permitted transactions on the exchange with terrorist organizations like Hamas.
The agreement stipulates that an impartial business will oversee the company’s compliance for up to five years. The monitor is not yet assigned.
Prosecutors claimed in a filing that Binance left the financial system open to “those who seek to exploit our system for their own gain,” and they urged the judge to approve the arrangement.
Prosecutors stated, “In summary, considering the extent and gravity of Binance’s wrongdoing — it was deliberate and directed by senior executives, with hundreds of millions of dollars of collateral consequences.”
Deputy general counsel for Binance, Josh Eaton, informed the judge that the business “accepts full responsibility for its past and for the reasons we’re sitting here today.” Eaton added, “We’re also proud of the compliance enhancements” made over the previous several years.
Jones stated that although Binance was aware that it was governed by US law, ” despite this knowledge the defendant made calculated decisions not to follow US laws.” He stated that, in addition to protecting clients, the sentencing aims to prevent Binance and similar businesses from acting in this way in the future.
Zhao might have received a 10-year sentence, but his sentencing was postponed until April. As it stands, he will likely receive a maximum of 18 months in prison.
Also Read: Binance Hit with $4.3 Billion Penalty for AML Breaches
