US court approves order for Binance to pay US$2.7 billion to CFTC

A US COURT entered an order against crypto exchange Binance and its former CEO, Changpeng Zhao, approving billions of US dollars in fines for money laundering following a case brought by the US Commodity Futures Trading Commission (CFTC), the agency said on Monday (Dec 18).

Zhao will pay US$150 million and Binance will pay US$2.7 billion to the CFTC as a result, the agency said.

The US District Court for the Northern District of Illinois approved the previously announced settlement and entered a consent order of permanent injunction, civil monetary penalty, and equitable relief against Zhao and Binance, the CFTC said. The settlement was reached in late November.

The court imposed a US$150 million civil monetary penalty personally against Zhao, and required Binance to disgorge US$1.35 billion of ill-gotten transaction fees and pay a US$1.35 billion penalty to the CFTC, according to the agency.

In November, Zhao stepped down and pleaded guilty to breaking US anti-money laundering laws as part of a settlement resolving a years-long probe into the world’s largest crypto exchange.

At the time, Binance said the resolutions acknowledged the company’s responsibility “for historical, criminal compliance violations, and allow our company to turn the page”.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Binance broke US anti-money laundering and sanctions laws and failed to report more than 100,000 suspicious transactions with organisations the US described as terrorist groups, authorities have said.

The exchange also failed to report transactions with websites devoted to selling child sexual abuse material and was one of the largest recipients of ransomware proceeds, they added. REUTERS