JUST IN: Founder and CEO of Binance, Pleads Guilty to Violating Money Laundering Laws in the US
Changpeng Zhao, founder and CEO of major cryptocurrency exchange Binance, has pleaded guilty to violating money laundering laws in the US.
Changpeng Zhao, founder and CEO of major cryptocurrency exchange Binance, has pleaded guilty to violating money laundering laws in the US.
Specifically, he pleaded guilty to one count of operation of an unlicensed money-transmitting business. This is a felony charge.
The charges stem from Binance operating in the US before obtaining the proper licensing and registration between 2017 and 2019.
As part of the plea deal, Zhao has agreed to pay $300,000 in fines and forfeit $300,000 that was seized during the investigation.
Importantly, he will not face any prison time. The deal avoids a potential jail sentence of 5 years that the charges carried.
Binance is not headquartered in the US and does not currently service US customers directly. However, the charges relate to its earlier operations before establishing proper licenses.
The plea represents an acknowledgment of past compliance issues by Binance and its CEO, as the cryptocurrency industry faces increased regulatory scrutiny globally.
In summary, while the plea deal avoids harsher penalties, it confirms that Binance violated US money transmission laws during its earlier operations and establishes a precedent for cryptocurrency companies to obtain proper licensing.
References:
Binance Founder Changpeng Zhao Pleads Guilty to Money Laundering Violations — The New York Times (nytimes.com)
