Cryptocurrency exchange Binance will pay $4.3 billion to the USA for violation of criminal law. The company’s founder and CEO, Changpeng Zhao, pleaded guilty to himself and the company. This was reported by US Department of Justice.
“These laws ensure that our financial institutions are denied access by terrorist organizations, drug traffickers, and sanctioned states that pose a threat to public safety and national security,” the ministry said.
This fine is one of the largest fines ever collected in a criminal case in the United States. The Department of Justice believes Binance has become the world’s largest cryptocurrency exchange in part because of its crimes: “Binance puts its profits above the safety of the American people.” In the ministry’s statement, it was stated that exchange employees were aware that thousands of customers from sanctioned countries were served and that making transactions between customers in these countries and US citizens was a violation of the law.
“But they continued to do it anyway. Binance facilitated approximately $900 million worth of transactions between US and Iranian users. The US Department of Justice said this also involved US users in Syria and also in Crimea, Donetsk and Lugansk.” He said that it also facilitates transactions worth millions of dollars between users.
Binance has also been hit by a bank secrecy allegation. The U.S. Department of Justice believes Zhao willfully violated a law requiring financial institutions to prevent money laundering and terrorist financing.
Binance CEO resigned, as announced on his Twitter account. “I accept that this was an emotionally difficult decision. But I know this is the right step. I made mistakes and I must take responsibility for them. “This is better for our community, Binance, and me personally,” he wrote.
Zhao could be sentenced to between one and ten years in prison. He lives in the UAE, which has no extradition treaty with the US.
Zhao, formerly president of crypto exchange Binance gone He resigned due to a money laundering case.