The U.S Attorney’s Office for the Western District of Washington recorded over $1.51 billion in fines for 2024, a new record, with Binance forking out $1.5 billion of that amount. This makes up almost 100% of the total penalties.
The hefty fine is one of the District’s largest payouts. It is part of an even larger $4.3 billion imposing on Binance for offenses.
These offenses range from failing to register as a transaction business to violating sanctions imposed by the U.S government.
The District worked with the Criminal Division’s Money Laundering and Asset Recovery Section. The National Security Division is also in place to ensure Binance takes full responsibility for its actions.
U.S. Attorney Gorman said, “Our office worked closely with Department of Justice components on the criminal case against Binance, in which Binance pleaded guilty to failing to register as a money transmitting business, willfully violating the Bank Secrecy Act, and causing violations of U.S. sanctions.”
She continues, “That $1.5 billion coming through our office is part of the $4.3 billion criminal fine and forfeiture. It is a record in the Western District of Washington.“
As part of the settlement process, Binance has resolved to exit the U.S. market entirely, and its co-founder and CEO, Chanpeng Zhao, has stepped down from the company’s leadership.
Zhao was asked to pay a $50 million fine and avoid any involvement or dealings with the company for the next three years. Furthermore, the former CEO was given a four-month prison sentence for his role in the company’s financial violations.
The Attorney’s office recorded various restitutions from the firm, including $8.8 million in civil action and $3.8 million in criminal restitution. The District collected $2.8 million in asset forfeiture to compensate victims and encourage law enforcement efforts.
Legal Dispute Between Binance and SEC
Amidst these, Binance and the U.S. SEC have agreed to a 60-day pause of their ongoing legal proceedings. The motion, filed on February 10, comes after the SEC established a crypto task force.
It serves as a middle ground to help clarify the details of the dispute and resolve the case.
Recall that the U.S. SEC filed a lawsuit against Binance in June 2023, accusing the firm of breaking the commission’s regulations. Binance has 13 charges, including unregistered sale of crypto assets and operating as an unregistered crypto exchange.
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