A federal judge has approved a settlement between Binance and the Commodity Futures Trading Commission, less than a month after the crypto exchange’s former CEO pleaded guilty to anti-money laundering violations.
According to the order signed on December 14 by Judge Manish Shah in the United States District Court for the Northern District of Illinois, former CEO Changpeng Zhao will have to pay $150 million, with a third of that paid within the next 30 days. According to the order, Binance must pay a $1.35 billion penalty to the CFTC as well as disgorge $1.35 billion in “ill-gotten transaction fees.”
According to the agency, Binance solicited customers in the United States at the direction of former CEO Changpeng Zhao and was aware of the situation regulations in the United States but “chosen to ignore them,” according to a statement issued on Monday.
The consent order also requires Binance and Zhao to guarantee that the exchange will establish a corporate governance structure that includes an independent board of directors, a compliance committee, and an audit committee.
The criminal case
In late November, the CFTC, Treasury Department, and Justice Department announced a $4.3 billion corporate settlement, setting a new record. Zhao pleaded guilty to anti-money laundering and sanctions violations after federal regulators investigated him for years.
Last week, Zhao resigned as chairman of the board of directors of Binance.US, effectively removing his influence from Binance.As a result, his interest in the US arm of the exchange is “purely economic.”
