Changpeng Zhao, the chief executive of Binance, allegedly admitted to money laundering violations in a US court yesterday. The confession will result in the cryptocurrency exchange he founded paying more than US$4 billion in fines. Attorney General Merrick Garland said Binance’s success as the world’s leading cryptocurrency exchange was partially due to its criminal activities.
The Department of Justice (DoJ) stated that Binance’s plea agreement was part of a joint effort that also involved the Treasury Department’s Financial Crimes Enforcement Network and Office of Foreign Assets Control (OFAC). Zhao, a Canadian resident living abroad, admitted to neglecting to maintain an effective anti-money laundering programme and has since resigned as CEO. As part of the plea, he agreed to pay a fine of US$50 million.
Binance’s settlement with the…
