May 30, 2024

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Binance Reaches Historic $4.3 Billion Settlement With US

Binance Reaches Historic $4.3 Billion Settlement With US

In a significant twist, leading cryptocurrency exchange Binance has reached a $4.3 billion settlement with the US government, according to Catherine Chen, head of corporate and VIP clients at Binance.

The settlement is seen as a turning point for the company, which is now working to embrace the coming wave of regulation.

Appointment of an independent compliance monitor

As part of the deal, Binance committed to appoint an independent compliance monitor for 3 years and agreed to five years of oversight by the US Treasury Department. Chen sees these moves as a positive development.

Contrary to expectations, Chen assured that Binance's performance monitoring will not be affected by the deal. Instead, the company prepares for it and welcomes the challenge, believing it will benefit the market.

CZ resigns as CEO

In November 2023, Binance, Binance.US and co-founder Changpang “CZ” Zhao settled with the US government following allegations of violating anti-money laundering laws and sanctions regulations. Zhao agreed to step down as CEO and pleaded guilty to failing to maintain an adequate AML program. He faces a maximum sentence of 18 months in prison and is expected to be sentenced on April 30.

During the panel, Chen emphasized that the terms provide more clarity and certainty for Binance's users.

Grows towards greater maturity

Binance's new CEO, Richard Teng, admitted to CNBC on April 9 that the company is moving toward greater maturity. Deng revealed that the exchange, which had no formal headquarters under Zhao, is now looking for a global headquarters and is in discussions with multiple jurisdictions.

Despite the settlement, charges against Binance, Binance.US and Zhao are still pending with the Securities and Exchange Commission, alleging that they sold unregistered securities and pooled customer assets, charges that Binance denies.

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