Binance's Record $4.3 Billion Settlement: CZ Awaits Sentencing
Binance pleads guilty, accepting a $4.3 billion fine for compliance failures, marking the largest financial penalty in U.S. federal prosecution history against a crypto exchange.
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Binance pleads guilty, accepting a $4.3 billion fine for compliance failures, marking the largest financial penalty in U.S. federal prosecution history against a crypto exchange.
Binance provided services to U.S. customers but failed to comply with U.S. laws, including not registering with the U.S. Department of the Treasury as a money services business and not implementing an effective anti-money laundering program. Instead, it facilitated unregulated cryptocurrency transactions worth billions of dollars, including transactions involving U.S. users and unsanctioned users.
Legal counsel representing Binance and CZ contended that the CFTC's legal actions could be interpreted as an effort to assume a role akin to the "world’s derivatives police."
According to CZ, buying a bank would not guarantee future debankings and would thus be a suboptimal solution.
Amid the SEC's objections to BinanceUS's attempt to acquire Voyager Digital, rumors have spread throughout the crypto community that Binance has called off the deal.
CZ said on Feb.1 that stablecoins regulation could help accelerate its adoption and commended Hong Kong's "decided approach."
Regarding the alleged misuse of funds at bankrupt rival FTX, CZ said that crypto businesses must never touch user funds.
Binance experienced a historic day and stress test yesterday after several rumors and FUD surfaced.
CZ showed commendable dedication to the Binance community, staying up late into the night and posting updates on Twitter.