Binance Plea Deal: US Prosecutors Want $4.3 Billion Accepted

(CTN News) – A US federal judge is urged to approve a plea agreement with Binance Holdings Ltd., one of the world’s largest cryptocurrency exchanges.

A record $4.3 billion penalty has been imposed on Binance for noncompliance with anti-money laundering (AML) rules and sanctions breaches.

Notably, the prosecutors point out that top leadership engaged in deliberate wrongdoing, which poses grave risks to the country’s financial stability.

The penalty imposed on Binance is historic

U.S. prosecutors have urged a federal judge in Seattle to accept a plea agreement for Binance in a recent sentencing memo filed on Friday. Bloomberg reported that the sentencing memo highlights senior executives’ deliberate misconduct, justifying proposed penalties.

Specifically, Binance’s plea deal provides for the company to be monitored for up to five years to ensure compliance with regulations.

Binance failed to register as a money services company and implement an effective anti-money laundering program, leaving the platform vulnerable to exploitation by nefarious actors seeking to evade sanctions and launder money.

Furthermore, Changpeng Zhao, the former CEO of Binance, pleaded guilty to anti-money laundering charges and faces up to 10 years in prison. However, under the plea agreement, he will receive a shorter sentence.

Meanwhile, Binance is facing a pivotal moment in its history as Changpeng Zhao is scheduled for sentencing and a new CEO is appointed. With the new CEO, Richard Teng, he will need to navigate the fallout from the plea agreement. He will also need to restore customer and regulatory trust.

While Teng seeks to steer the crypto exchange through this challenging period, he will be concerned about preventing a mass exodus of customers. It is likely that the outcome of legal troubles and its efforts to address regulatory concerns will have far-reaching effects on the cryptocurrency market.

Looking at the current buzz surrounding and its new CEO Richard Teng, however, it appears that the platform is regaining the trust of the community.

SEE ALSO:

UK Court Sides With Lessor Over Seized VietJet Airbus A321 Planes