© Reuters. FILE PHOTO: Figures with computers and smartphones are seen in front of the Binance logo in this illustration taken February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
By Jonathan Stempel
(Reuters) – A U.S. judge on Friday accepted Binance's guilty plea and a fine of more than $4.3 billion for violating federal anti-money laundering and sanctions laws through failures in internal controls at the largest exchange. of cryptocurrencies in the world.
U.S. District Judge Richard Jones in Seattle approved the plea, which includes a $1.81 billion criminal fine and $2.51 billion in forfeiture, about an hour after the government proposed changes to Binance founder Changpeng's bail. Zhao, prompting an objection from Zhao's lawyers.
Binance's statement announced in November resolved a years-long investigation that found the exchange had failed to report more than 100,000 suspicious transactions involving designated terrorist groups, including Hamas, Al Qaeda and the Islamic State of Iraq and Syria, or ISIS.
Prosecutors said the Binance platform also supported the sale of child sexual abuse materials and was among the largest recipients of ransomware revenue.
In a statement on Friday, Binance said it accepted responsibility, has improved its anti-money laundering and “know your customer” protocols, and has made “significant progress” toward the changes required in its plea agreement.
Zhao has been free in the United States on $175 million bail after pleading guilty in November to money laundering violations.
His statement included a $50 million fine and required him to resign as CEO of Binance.
In a court filing, prosecutors said the proposed bail changes were intended to reflect Jones' orders that Zhao remain in the continental United States and under court supervision until his April 30 sentencing.
The conditions include that Zhao give three days' notice of any travel plans, surrender his passports and maintain his current residence unless he gets approval for a change.
Pretrial services officials recommend that Zhao also undergo location monitoring.
Prosecutors said they had discussed the changes with Zhao's lawyers several times but “oppose this motion as written.”
Zhao's lawyers did not immediately respond to requests for comment.
The cases are United States v. Binance Holdings Ltd, United States District Court, Western District of Washington, No. 23-cr-00178, and United States v. Zhao in the same court, No. 23-cr-00179.
