Changpeng Zhao, the CEO and founder of Binance, has entered a guilty plea for charges related to money laundering, unlicensed money transmission, and violations in Seattle. The federal authorities have disclosed that Binance has agreed to pay fines and penalties exceeding $4 billion.
On Tuesday, the pleas were submitted in a federal court within the United States. As part of the settlement, Binance has reached agreements with the Treasury Department and the Commodity Futures Trading Commission, both of which have been conducting investigations into the company.
In exchange for admitting guilt, Zhao has agreed to step down from his role as CEO and pay a fine of $50 million. The prosecution is seeking an 18-month prison term for Zhao, which represents the maximum penalty under federal guidelines, as stated by senior officials from the Department of Justice.
Furthermore, Binance has consented to the appointment of a government monitor to supervise its business operations. According to the terms of the agreement, the billionaire entrepreneur will be prohibited from any involvement with Binance for a period of three years after the monitor assumes their role.
Attorney General Merrick Garland commented on the matter, stating, “Binance achieved its status as the world’s largest cryptocurrency exchange in part due to its criminal activities; now it is facing one of the largest corporate penalties in the history of the United States.”
This case marks the second instance where both Zhao and Binance, one of the largest cryptocurrency exchange firms, have faced charges related to money laundering. Just two weeks ago, Sam Bankman-Fried, the former CEO of FTX, was found guilty of fraud and money laundering following a month-long trial in New York.