US judge approves Binance’s $4.3 billion criminal plea

A US judge accepted on Friday. of Binance A criminal plea and fine of more than $4.3 billion (roughly Rs. 35,635 crore) for violating federal anti-money laundering and sanctions laws by failing to maintain internal controls in the world’s largest country. Cryptocurrency exchange.

US District Judge Richard Jones in Seattle granted the request, which includes a criminal fine of $1.81 billion (roughly Rs. 15,000 crore) and forfeiture of $2.51 billion (roughly Rs. 20,801 crore), from the government to Binance founder Changpeng. About an hour after the changes were proposed. Zhao’s bond, objected to by Zhao’s lawyers.

Binance’s plea, announced in November, resolves a years-long investigation that found the exchange failed to report more than 100,000 suspicious transactions involving Hamas, al-Qaeda and the Islamic State of Iraq and Syria, or ISIS. Included.

Prosecutors said Binance’s platform also supported the sale of child sexual exploitation material and was among the largest recipients of ransomware revenue.

In a statement Friday, Binance said it has accepted responsibility, upgraded its anti-money laundering and “know your customer” protocols, and is “moving toward changes required under its plea agreement.” “Important progress”.

Zhao has been free in the US on a $175 million (roughly Rs 1,450 crore) bond after pleading guilty to money laundering offenses in November.

His plea included a fine of $50 million (about Rs 414 crore) and required him to step down as Binance’s chief executive.

In court filings, prosecutors said the proposed bond changes were intended to reflect Jones’ orders that Zhao remain in the continental United States and be under the supervision of a court officer until his April 30 sentencing.

Conditions include that Zhao provide three days’ notice of any travel plans, surrender his passports and maintain his current residence until he is approved to change.

Pretrial services officers are recommending that Zhao also be subject to location supervision.

Prosecutors said they have discussed the changes with Zhao’s lawyers several times, but they “object in writing to the motion.”

Lawyers for Zhao did not immediately respond to requests for comment.

Cases US v. Binance Holdings Ltd, US District Court, Western District of Washington, No. 23-cr-00178, and US v. Zhao in the same court, No. 23-cr-00179.

© Thomson Reuters 2024

---