Binance Fined $2.7 Billion by US Court
A Northern Illinois district court has ordered Binance to pay $1.35 billion for illicit transactions along with an equivalent fine to the regulatory agency.
“The court determined that Changpeng Zhao (CZ) and Binance violated the Commodity Exchange Act (CEA) and CFTC regulations. CZ, as an individual, faces a civil penalty of $150 million. Binance has agreed to forfeit $1.35 billion from unlawful transactions and pay an additional $1.35 billion fine to the CFTC,” stated the Commodity Futures Trading Commission (CFTC) on December 19th.
According to Reuters, the court decision has been approved by the Northern Illinois district court, concluding the CFTC’s legal actions against Binance and its founders.
Previously, on March 27th, the CFTC filed a lawsuit against CZ and Binance for market manipulation, lack of regulatory compliance, and aiding money laundering. In the 74-page complaint, the CFTC categorized Bitcoin, Ethereum, Binance USD, Tether, and Litecoin as commodities. The agency also accused the world’s largest cryptocurrency exchange of facilitating terrorist activities and disregarding US laws.
On November 21st, CZ unexpectedly announced his resignation as CEO of Binance. He appeared in the US, presented himself before the Seattle court, and pleaded guilty to “failure to comply with anti-money laundering regulations” and violating the sanctions imposed by the US Department of Justice (DOJ). On December 7th, CZ’s extradition request to the UAE was rejected by the court. The billionaire must stay in the US until the sentencing on February 23, 2024, facing a potential 18-month prison term for fraud. Besides CZ, Samuel Lim, Binance’s former legal director, was fined $1.5 million for “aiding and abetting violations.”
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