United States v. Binance Holdings Limited, d/b/a Binance.com (2024)

FAQs

Is the CEO of Binance found guilty? ›

SEATTLE, April 30 (Reuters) - Changpeng Zhao, the former chief executive of Binance, was sentenced on Tuesday to four months in prison after pleading guilty to violating U.S. laws against money laundering at the world's largest cryptocurrency exchange.

The suit was originally brought in April 2020 by a group of crypto investors, who alleged they purchased securities from Binance, including the ERC-20 tokens EOS, TRX, ELF, FUN, ICX, OMG, and QSP. The EOS token is issued by Block. One, the parent company to Bullish, which in turn is CoinDesk's parent company.

“Binance's and Zhao's willful violations of anti-money laundering and sanctions laws threatened the U.S. financial system and our national security, and each of them has now pleaded guilty. Make no mistake: when you place profits over compliance with the law, you will answer for your crimes in the United States.”

The company agreed to pay $4.3 billion to the U.S. government to settle charges that it allowed criminal activity to flourish on the exchange. U.S. officials said Binance violated economic sanctions, allowing access to its platform to people in countries like Cuba, Syria and Iran.

Changpeng “CZ” Zhao once sat atop the crypto industry as the founder and CEO of Binance, the world's leading crypto exchange. On Tuesday, a judge in Seattle federal court sentenced Zhao to four months in prison as part of a plea deal—but the multibillionaire will still retain most of his wealth.

Prosecutors said that, under Mr. Zhao's watch, Binance had refused to comply with American sanctions, allowing access to customers in countries like Iran, Syria and Cuba. The company also failed to report suspicious transactions involving narcotics and child sexual abuse materials, the government said.

Binance is often considered one of the safest exchanges in the world if you consider the level of security.

In the June lawsuit, the SEC filed 13 charges against Binance, accusing the exchange of mishandling customer funds and offering registered securities, alleging that the company and founder Changpeng Zhao had engaged in an “extensive web of deception.”

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Security breaches and financial instabilities remain a challenge across cryptocurrency exchanges, despite ongoing efforts to enhance security measures. This reality applies to all exchanges, including Binance, which boasts over 150 million users and a daily trading volume exceeding $14.5 billion (as of November 2023).

Is Binance legal in the US? ›

Binance pleaded guilty to anti-money-laundering violations in a deal with the Justice Department—agreeing to pay fines totaling $4.3 billion and to allow oversight by an independent monitor.

Depending on the reason for the shutdown, Binance could face legal actions, asset freezes, or hacking attempts that could jeopardize the security and availability of the funds. Users who store their crypto assets on Binance would risk losing their money or having to wait for a long time to get it back.

Cryptocurrency exchange giant Binance faces federal charges for fraud and money laundering.

Government and law enforcement agencies can use this system to submit information requests. Binance will review each case and cooperate on a case-by-case basis to disclose information as legally required, in accordance with our Terms of Use and applicable laws.

Zhao, who is commonly referred to as "CZ" in crypto circles, was sentenced to four months in prison on Tuesday, after pleading guilty to charges of enabling money laundering at his crypto exchange.

Changpeng Zhao, the former head of the world's largest cryptocurrency trading company, was sentenced to four months in jail on Tuesday in a Seattle courtroom. Zhao pleaded guilty late last year to money-laundering violations and stepped down as CEO of Binance. The company itself was fined $4.3bn.

He pleaded guilty to violating US anti-money laundering laws and agreed to step down as Binance CEO, the authorities announcing later that the firm would pay a $4.3 billion settlement. The legal cases painted a picture of Zhao as a ruthless operator pursuing growth at all costs.

The current CEO of Binance is Richard Teng. He took over the position from Changpeng Zhao (CZ) on November 21, 2023, after CZ stepped down as part of a $4.3 billion settlement with the U.S. Department of Justice.