The largest cryptocurrency exchange in the world, Binance Holdings Ltd (BHL), has been ordered to pay a hefty fine of $4.3 billion for violating US anti-money laundering and sanctions laws. This settlement, approved by a United States judge, includes a fine of $1.8 billion and forfeiture of $2.5 billion.
According to US District Judge Richard Jones in Washington state, Binance has been profiting from the US financial system without adhering to its rules. This allowed criminals to use the exchange to move millions of dollars of stolen funds and illicit proceeds. The government stated that this penalty is the largest ever imposed against a money services business and is in line with the severity of Binance’s criminal conduct.
In November, a settlement was reached in which Binance’s chief executive, Changpeng Zhao, pleaded guilty to violating US anti-money laundering laws and agreed to step down from his position. Binance, which was established in 2017 under Zhao’s leadership, quickly rose to dominance in the crypto-trading market, making him a billionaire.
However, with the collapse of crypto markets and increased scrutiny from regulators, Binance has suffered significant losses. Despite operating crypto exchanges and providing services globally, the exchange now faces challenges as regulators investigate the legality of its business practices.
GIPHY App Key not set. Please check settings