Prosecutors say Binance’s top executives deliberately violated the law. Therefore, they argue, the historic $4.3 billion fine is justified. In November 2023, Binance and its former CEO Changpeng Zhao were found guilty of charges of money laundering and sanctions violations. In a latest development, US prosecutors asked the judge to approve the Binance plea deal.
Prosecutors explained the reason for the Binance agreement and asked for approval!
The plea agreement requires Binance to pay one of the largest fines in US history at $4.3 billion. The agreement also calls for five years of oversight to ensure Binance complies with regulations. Prosecutors say Binance deliberately violated the law. Moreover, he notes, it makes the financial system vulnerable. Considering this situation, they say the historic punishment is justified. Prosecutors say Binance refused to register as a money services business. It also emphasizes that it has failed to implement anti-money laundering measures.
According to the prosecutor’s office, these actions left Binance and its customers “vulnerable to those who wish to exploit” the US financial system. Prosecutors state that the penalties are justified with the following statements:
Given the nature and seriousness of Binance’s misconduct – it was intentional and orchestrated by senior executives, and had collateral consequences in the hundreds of millions of dollars
Illegal financial flows
According to the Treasury Department’s November press release announcing the plea deal, Binance’s negligence allowed terrorist groups to trade on the platform. These groups include Hamas’ Al Qassam Brigades. There is also the Palestinian Islamic Jihad (PIJ), Al Qaeda, and the Islamic State of Iraq and the Levant (ISIS). According to the agreement, the platform also facilitated transactions for hackers and fraudsters, as well as websites aimed at selling child sexual abuse materials.
cryptokoin.comAs you follow from , former Binance CEO Changpeng Zhao was released on $175 million bail. According to the court’s plan, CZ was to be sentenced within this month. However, a federal court recently postponed his sentencing until the end of April. Currently, Changpeng Zhao faces up to 10 years in prison. However, according to experts, he will probably not be sentenced to more than 18 months under the plea agreement. CZ also agreed to pay a $50 million fine.
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